Ecuador consolidates position as largest recipient of Spanish remittances in Latin America

RIO DE JANEIRO, BRAZIL – Ecuadorian citizens residing in Spain sent remittances worth US$1.0821 billion (€933.5 million) to their country of origin in 2020, placing the Andean nation as the largest recipient of remittances from Spain in Latin America, according to data offered by Sendity.

The Spanish money transfer startup has highlighted that the figure of remittances from Spain represents almost half of the total remittances that Ecuador received last year, which amounted to some 2.848 billion dollars, equivalent to 2.74% of Ecuador’s GDP.

Read also: Check out our coverage on Ecuador

Ecuador was followed by Colombia, with $840.6 million sent from Spain; the Dominican Republic, with $668.5 million; Peru, with $407.4 million; and Bolivia, with $299.1 million.

The money transfer service platform has explained that in Latin America, where migratory flows have increased significantly, there has been an increase in remittances, especially in the smaller economies of the area, where there is a more significant economic dependence on the export of talent.

In fact, in several economies, remittances constitute the bulk of the income received by the population, and access to goods and raw materials, the sustainability of families, and regional growth in developing areas depend on them.

They are also a determining factor for government macroeconomic policy. They allow the country’s current account deficit to widen and help stabilize the exchange rate, which facilitates the acquisition of goods from abroad and the development of exports. In addition, this has a direct impact on investment by improving the necessary infrastructure, which generates employment and movement of economies.

“Due to the continuous flow of remittances from one country to another and the importance they have for the economy of these countries, it is increasingly necessary to facilitate simple money transfer services that regulate exchange rates and abusive commissions, to ensure that these monetary movements remain stable and the economies of these countries continue to improve,” concludes Sendity’s CEO, Rafael Salazar.