By: Staff Writer
November 13, 2026
A recent report by the International Fund for Agricultural Development, a specialized agency of the United Nations financial institution that assists rural communities worldwide, reported that remittances to Latin America and the Caribbean (LAC) surged by 132 per cent to US$168.6 billion, increasing the region’s global share from 19 to 23 per cent, between 2016 and 2026.
Mexico remains the region’s largest market, while Guatemala saw one of the decade’s most striking increases: inflows almost tripled to US$21.6 billion.
Four of the five most reliant economies are now in Central America. In 2016, El Salvador led the ranking at 19 per cent. Over the decade, Honduras, El Salvador and Guatemala recorded substantial increases, while Nicaragua entered the five most reliant economies list.
Alvaro Lario, president of IFAD, said that the agency, “has been at the forefront of harnessing remittances for rural development.
“Through the Financing Facility for Remittances and its broader engagement at the country level, IFAD has developed substantial expertise in remittance markets and the role of remittances in advancing financial inclusion, strengthening rural livelihoods and building resilience.
“This experience has shown that successful solutions are rooted in local contexts and priorities of rural households. It has also demonstrated the importance of scaling proven approaches so that more people, communities and local economies can benefit.”
The report also said that the remittance increase correlated with the rise in population by 41 percent, which is estimated at 44 million.
“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 said.
It continued: “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.”