IADB: Remittances to L. America have slowed down

According to figures from the Inter-American Development Bank (IADB), the amount of money sent from immigrants in the U.S. to Latin America has been at a slower rate in January and February than during the same period last year. This could spell trouble for countries such as El Salvador, Honduras and Jamaica whose economies rely on funds received from abroad:

“We don't know if it's a trend or a minor correction," (IADB official Donald) Terry said. "If it becomes a trend as opposed to a moment in time, this would not be good in terms of U.S. interests in Central America.”

Mexico, Brazil, and Colombia received the most money in remittances in 2006; however, remittances to Central America countries totaled almost 65% of all remittances to Latin America in 2004.

An interesting addendum to the story- a global economics blog linked to a recent Wall Street Journal article connecting the U.S. housing slump to the slowdown in remittances.

Links- The Indianapolis Star, Inter-American Development Bank, Migration Policy Institute, RGE Monitor

Image- The Earth Institute at Columbia University