By: Staff Writer
September 18, 2026
A new United Nations (UN) report revealed that remittances to Latin America and the Caribbean (LAC) surged 132 percent between 2016 and 2025, reaching $168.6 billion.
The report, compiled by the UN’s International Fund for Agricultural Development, also said that the LAC recorded the fastest remittance growth of any region over the past decade. The population increased by 7 per cent, the number of emigrants rose by 41 per cent to approximately 44 million, in addition to the 132 percent surge.
Migration from LAC has become increasingly multidirectional. Although LAC migrants migrate to Northern America and Europe, intraregional mobility expanded substantially, and several traditional countries of origin also became important destinations and transit countries.
The report added: “Remittance growth substantially outpaced both population and migration. Inflows increased from US$72.6 billion in 2016 to US$168.6 billion in 2025, raising the region’s share of global remittances from 19 to 23 per cent. Strong diaspora engagement and sustained migrant employment contributed to this expansion, particularly in corridors linked to the United States.”
The growing importance of remittances also leaves families and economies vulnerable to changes affecting migrants abroad.
That is particularly evident in LAC, where the United States remains the dominant source of remittances.
The report warns that deportations, employment restrictions or weaker labour demand can reduce both the number of people sending money and their ability to do so.
Asked about tougher migration policies in the United States and Europe, Mr. de Vasconcellos said the impact is not yet visible as a broad decline.
“Figures right now do not show actually a reduction in remittances,” he said, adding that family needs tend to keep flows resilient during crises.
Central America is among the most exposed. Remittances were equivalent to 30 per cent of GDP in Honduras in 2025, 28 per cent in El Salvador and 27 per cent in Nicaragua.
A study cited by IFAD also found that 61 per cent of returnees surveyed in Guatemala had been the main income earner in their household, showing how involuntary return can mean a sudden loss of income for relatives left behind.
Latin America and the Caribbean recorded the fastest remittance growth of any region, rising 132 per cent to $168.6 billion.
By comparison, Asia and the Pacific remained the largest recipient region overall, receiving $384.9 billion, or 53 per cent of the global total. While Africa received $124.2 billion in 2025, an increase of 86 per cent over the decade, with Egypt overtaking Nigeria as the continent’s largest recipient.
Almost one in three dollars sent home by migrants—an estimated US$233 billion—reached rural areas, where access to formal employment, financial services and public infrastructure is frequently weakest and where these flows can have significant impact.
According to the report, remittance-receiving families invest an estimated US$22 billion each year in rural agrifood systems, supporting agricultural production, rural enterprises and employment.
“The impact of remittances in rural areas extends beyond recipient households into surrounding economies, supporting local businesses, jobs and food systems,” said Lario. “For millions of rural families, receiving remittances can be the first step towards generating savings and accessing insurance and appropriate credit. They can also serve as a pathway towards greater resilience in the face of economic and climate-related shocks. In many contexts, this helps expand opportunities so that migration becomes a choice rather than a necessity.”