Dominican Republic faces stagnant remittances since 2009
In four years, the country failed to receive US$263 million due to recession
Diario Libre
SD. Since 2008, the Dominican Republic shows, although inconsistent, a decelerating tendency in the arrival of family remittances from overseas, which in turn affects one of the principle and most stable sources of hard currency in the country.
During the years 2009, 2010, and 2012, this flow of fresh currency, in yearly terms fell 5.6%, 1.4% and 1.1% respectively, which means that compared with what was received in the years immediately previous, the country missed out on receiving a total of US$263.2 million.
According to data from the X National Census on Population and Housing, some 224,000 homes receive remittances in the Dominican Republic which allows them to finance a large part of their basket of basic goods and services. This means that a decrease in the flow, generally from the United States and Spain, has a strong social impact.
The reports from the Central Bank also reveal a slight recovery between January and September 2013.
Compared to a 3.3% decrease during the same period of 2012, it grew a significant 0.8%, which can only be related with a slight improvement in the job markets in the United States and Spain, but above all with the willingness of Dominican immigrants overseas to help their families in the Dominican Republic.
In its economic report corresponding to the first seven months of the year, the Central Bank points out: "This behavior indicates that Dominicans overseas have obtained alternative (employment) in order to continue sending remittances to their families, in spite of the adverse international surroundings."
In the same line, the president of the Vimenca Group, Victor Mendez Capellan, who said last October that in spite of the economic crisis which is seen in the world, the remittance to the Dominican Republic continued arriving and that they had grown around 15% in comparison with the same period in 2012.
The businessman, who heads one of the principle remittance companies in the country (Western Union/Vimenca) pointed out that remittances from Europe, where a large number of Dominicans live, and which shows a significant unemployment rate, had remained static, but had not decreased.
"In Spain they are holding on, but working. The Dominican does not play with the family money. If he is not working, he gets a loan from a bank and he sends it," said Mendez Capellan.
Remittance grew in spite of crisis
According to the information from the Central Bank, in 2011 the remittance showed a 6.7% growth, reversing the 1.6% decrease during the same period in 2010, in spite of the slow recovery of the productive and financial activity of the world economy, especially in the United States and European economies, where a great number of Dominican immigrants live. In addition, the institution points out that this growth is all the more satisfactory if it is compared with the averages in the region.
During the years 2009, 2010, and 2012, this flow of fresh currency, in yearly terms fell 5.6%, 1.4% and 1.1% respectively, which means that compared with what was received in the years immediately previous, the country missed out on receiving a total of US$263.2 million.
According to data from the X National Census on Population and Housing, some 224,000 homes receive remittances in the Dominican Republic which allows them to finance a large part of their basket of basic goods and services. This means that a decrease in the flow, generally from the United States and Spain, has a strong social impact.
The reports from the Central Bank also reveal a slight recovery between January and September 2013.
Compared to a 3.3% decrease during the same period of 2012, it grew a significant 0.8%, which can only be related with a slight improvement in the job markets in the United States and Spain, but above all with the willingness of Dominican immigrants overseas to help their families in the Dominican Republic.
In its economic report corresponding to the first seven months of the year, the Central Bank points out: "This behavior indicates that Dominicans overseas have obtained alternative (employment) in order to continue sending remittances to their families, in spite of the adverse international surroundings."
In the same line, the president of the Vimenca Group, Victor Mendez Capellan, who said last October that in spite of the economic crisis which is seen in the world, the remittance to the Dominican Republic continued arriving and that they had grown around 15% in comparison with the same period in 2012.
The businessman, who heads one of the principle remittance companies in the country (Western Union/Vimenca) pointed out that remittances from Europe, where a large number of Dominicans live, and which shows a significant unemployment rate, had remained static, but had not decreased.
"In Spain they are holding on, but working. The Dominican does not play with the family money. If he is not working, he gets a loan from a bank and he sends it," said Mendez Capellan.
Remittance grew in spite of crisis
According to the information from the Central Bank, in 2011 the remittance showed a 6.7% growth, reversing the 1.6% decrease during the same period in 2010, in spite of the slow recovery of the productive and financial activity of the world economy, especially in the United States and European economies, where a great number of Dominican immigrants live. In addition, the institution points out that this growth is all the more satisfactory if it is compared with the averages in the region.
Diario Libre
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