Released: May 01, 2007

Immigrants slow rate of remittances home

Source: Krissah Williams, Washington Post (Free Registration)

The amount of money Latin American immigrants sent home from the United States grew at a slower rate during the first two months of the year than in the same period a year ago, according to the Inter-American Development Bank. The slowdown puzzled some experts who study such remittances, which contribute significantly to Latin American economies.

Remittances rose in the single digits in January and February after rising as much as 20 percent year-over-year since analysts began tracking the transfers at the beginning of the decade, the Inter-American Development Bank said yesterday.

Many remittance-rich nations would fall into a recession if immigrants began sending home significantly less money, which could encourage more poor Latin Americans to find work in the United States, according to the study and Donald Terry, manager of the Multilateral Investment Fund at the Inter-American Development Bank.

“We don’t know if it’s a trend or a minor correction,” 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.”

Read Full Article: Immigrants slow rate of remittances home