Remittances to Caribbean making healthy recovery, says World Bank

WASHINGTON, USA (CMC) — The World Bank says remittances to the Caribbean are making a "healthy recovery" after a "steep" 12 per cent decline last year.

According to the Washington-based financial institution's Outlook for Remittance Flows 2011-12, report, remittances to Latin American and the Caribbean are expected to grow by two per cent in 2010.

It said this reflects a "modest but steady recovery in the United States and a continuing pattern of resilience to the effects of the global economic crisis of 2008-2009".

Beyond 2010, the report said medium-term prospects improve significantly for the Latin American and Caribbean region with a growth pace of 7.6 per cent in 2011 and 10 per cent in 2012 to reach US$69 billion in total remittances.

"This is good news, especially when taken together with other good news such as growth in trade and direct foreign investment, which together have contributed to a positive growth rate in the region's economies," said World Bank senior economist Humberto Lopez.

Lopez, however, warned that persistent unemployment, volatile currencies and anti-immigrant sentiments in high-income countries could put the brakes on remittances flows.

But, for the moment, he said there's an upwards tendency south of the US border.

The report said that the Dominican Republic, Jamaica and Haiti were the main beneficiaries of the remittance flows.

The World Bank said globally, officially recorded remittance flows to developing countries are estimated to increase by six per cent to US$325 billion in 2010.

"This marks a healthy recovery from a 5.5 per cent decline registered in 2009," it said, adding that remittance flows are expected to increase by 6.2 per cent in 2011 and 8.1 per cent in 2012, to reach US$374 billion by 2012.