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Ecuador received more remittances in 2016
Posted On 17 Mar 2017
A total of USD 2 602 million were received by Ecuador in 2016 for remittances sent by migrants residing in the United States, Spain, Italy and other countries. That amount represented an increase of 9.7% compared to 2015, according to the latest report published by the Central Bank of Ecuador.
This behavior modifies the trend because in 2015 the number of remittances decreased when compared to what happened in 2014. The decrease, in that case, was a 3.4%: from USD 2 461.7 million to USD 2 377.8 million. The increase last year was due to a better performance of the US, Spanish and Italian economies, which are the main destinations of Ecuadorian migrants, according to the report of the Central Bank. 1.7 million compatriots live in those countries and 2 020 000 worldwide.
For the dean of the Faculty of Economics of the University of Cuenca, Rodrigo Mendieta, these resources are valuable because they represent an injection of foreign exchange for a shrinking economy, and because these serve to pay the daily expenses of the families that receive this money. Mendieta, who published the book “Remittances and regional economic disparities. Ecuadorian case,” says that the government should give greater importance to remittances because they represent a greater amount of money than foreign investment received by Ecuador. Also, incentives are needed for that money to be not only for consumption but also for investment.
Remittances from the United States reached USD1.46 billion in 2016, which represented 9.7% more than in 2015. From Spain remittances were USD 685.7 million, a 12% increase. In contrast, migrants living in Italy sent USD 157 million, a 7% more than in 2015.
Source: http://www.elcomercio.
