Weekly Report - 18 September 2014 (WR-14-37)

EL SALVADOR  | Increase in remittances. On 17 September El Salvador’s central bank (BCR) reported that remittances were up 8.1% year-on-year in the first eight months of 2014 to US$2.82bn, up a nominal US$211.4m. Remittances have been steadily increasing; the US$3.97bn sent back in 2013 was up 1.5% over 2012. The trend looks set to continue this year, with BCR figures showing consistent monthly increases all year. In August, the inflow was US$350.5m, up US$27.5m on the previous month. The BCR has credited this “rising trajectory” to “signs of dynamism” in the US economy, particularly falling unemployment, which has benefited Salvadorean nationals living there. On official figures, almost 3m Salvadoreans live abroad, of which 2.5m live in the US. The money they send back to their home country represents 16.4% of El Salvador’s GDP. Similar increases in remittance flows have been reported across Central America during the eight month period, with Guatemala, Honduras and Nicaragua posting annual increases of 9.2%, 7.6%, and 6.5% respectively.

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