Dominican Republic Records Strong Remittance Inflow
- The Central Bank reported that remittance inflows during February were equivalent to $761Mn, a 27.6% YoY increase. During the first two months of the year, remittances reached $1.55Bn, up 31.3% YoY.
- Remittances have remained very robust since last May, on the back of a recovery in economic conditions in the US, the source of more than 84% of inflows to DomRep.
- More specifically, general unemployment and Latino jobless rates have dropped in the US, while the stimulus measures have benefitted Dominican Republic immigrants who were then able to send money back home.
- As the US economy continues to recover, there should be more employment for immigrants, which will support a rise in remittance flows to DomRep. This should also bolster domestic consumption of goods and services and augment the expected rebound in economic activities.
(Source: Oppenheimer & NCBCM Research)