Peru received almost US$4.5 billion in remittances in 2023

The Central Reserve Bank (BCR) reported that, in 2023, Peru received remittances for 4,446 million dollars, the majority coming from the United States. This is an increase of almost 20% compared to the previous year.

Remittances are money transfers made by a worker who works in a foreign country to their country of origin. In the case of Peru and other Latin American countries, they are funds sent from various parts of the world to financially help their relatives in the country.

According to the Inter-American Development Bank (IDB), the remittances received by migrant families from Latin America have a significant impact on poverty reduction and are one of the main reasons for migration.

Peru has historically been an exporter of human capital and, therefore, a recipient of remittances, which have multiplied over the years. In 1990, the year in which the economic crisis of the Alberto Fujimori government occurred, remittances reached 87 million dollars.

In 2021, during the pandemic, a significant growth of 3,592 million dollars was observed, representing an increase of almost 40 times. The total amount of remittances in the country was equivalent to 1.7 percent of the gross domestic product (GDP). Given the impact of the pandemic confinement, remittances had a particular palliative importance.

Remittances play various roles, as some families use them for home construction, education, or daily expenses. They contribute significantly to thousands of Peruvians meeting their basic needs, such as food, and help overcome the poverty line.

In addition, they have a positive impact on families and household income, generating an increase in spending in different sectors of the local economy.

Likewise, they represent a fundamental contribution to the national economy and are an important support for families throughout the country. To get an idea of ​​its impact, it is necessary to know that more than 40 percent of the 3 million Peruvians who reside abroad send remittances to their families.