With one dollar above $3,800, remittances in Colombia continue to have an important weight in the economy. Its role in the GDP is 3%.
Photo: Bloomberg Agency
Figures managed by Bank of the Republic show that, during the first quarter of the year, Colombia received remittances for more than US$2,720 million, which not only translated into an increase of 9.8% compared to the same period last year, but also in the highest figure of the history.
As explained by the Bank of Bogotaremittances are the current transfers made by emigrants to their country of origin, whether in money or in kind and are part of the current transfers registered in the Balance of Payments of Colombia.
According to this banking entity, remittances are also consolidated as the second source of dollar income for the country, below the US$15.6 billion represented by oil and above the US$9,200 million represented by coal.
Read also: Remittances in Colombia: how much money entered the country in February?
An analysis advanced by the Union Bank reports that remittances could close March with an increase of 15% compared to the same month of 2023, this would be US$837.25 million.
As reported by Western Union In Colombia, Mother’s Day weekend is the date with the highest number of remittance transactions in the year for that company.
“The increase in remittances in the month of May can be attributed not only to the celebration of “Mother’s Day”, but also to the expansion and diversification of new transactional channels when making remittances. Today, people find a great offer to send and receive International Money Transfers regardless of where they are,” said Rodolfo Díaz, who is the vice president of Innovation at Banco Unión.
Data provided by that organization also reveal that, in 2023, half a million Colombians left the country, setting the United States and Spain as their main destinations.
These places have become the main origins of remittances that arrive in Colombia.
This is the complete list:
USA (53%)
Spain (13%)
Chili (4 %)
United Kingdom (4 %)
Ecuador (3 %).
The main departments receiving remittances are Valle del Cauca (26%), Cundinamarca (16%), Antioquia (16%) and Risaralda (5%).
“Remittances are a fundamental pillar in the Colombian economy, constituting close to 3% of the Gross Domestic Product (GDP). This economic contribution is vital, since in 2023 it will reach more than 10 billion dollars, supporting the importance of remittances for the economic development of the country.” Diaz concluded.
