The arrival in Ecuador of migrants’ money grew 2.96% in the first quarter of the year. The money flows from Spain and Italy were reduced.
The global economic situation also impacts the income of money from abroad to Ecuador. The thermometer is the arrival of remittances to the country from Ecuadorian migrants abroad.
According to data from the Central Bank of Ecuador (ECB), the flow of remittances that entered the country during the first quarter of 2019 totaled $ 736.21 million, 2.96% higher than that observed in the first quarter of 2018 ($ 715.05 million).
According to the ECB, the increase in the flow of remittances from abroad in the January-March 2019 quarter, compared to the same period last year, is attributed mainly to the dynamism and boom of the US economy. Remittances from that country reached $ 421 million, $ 31.4 million more compared to 2018 (see chart).
Trump’s management has achieved full employment in the United States. In April of this year, the unemployment or unemployment rate fell two tenths and stood at 3.6%, the lowest figure since December 1969.
However, in May, the US economy added only 75,000 jobs, a minimum figure below expectations. The data support suspicions that the US labor market is finally slowing down from its dizzying pace that was consolidated in 2018.
For the economist Santiago García, professor at the Central University of Ecuador, the higher income from remittances is good news in an economy in need of more dollars. This situation can stimulate consumption.
The increase in remittances is not accidental, Garcia adds. Last year, the income from remittances reached a peak of $ 3,030 million, the highest figure since 2007, according to the ECB.
While in the cases of Spain and Italy, other destinations that concentrate Ecuadorian migrants, money flows decreased in the first quarter of 2019. These countries are rearranging their economies, according to the ECB. Remittance income from Spain fell by 4.4% in the first quarter of 2019, compared to the same period in 2018. In the case of Italy, it fell by 7%. (I)