New figures show that Colombians working abroad are sending less money home for the third year in a row. Analysts blame the crisis in Europe and the faltering recovery of the US economy.
Statistics released by the Banco de la Republica, Colombia’s Central Bank, record that Colombian ex-patriates sent $1.555 billion back to their country between January and May 2010. The figure marks a 12.7% fall compared to the same period of 2009 and a 27% drop from the same period in 2008.
Preliminary data for the month of May indicate remittances of $330.8 million – 10% less than May 2009.
Remittances sent to Colombia were worth 3% of the country’s GDP, and 62% of foreign direct investment in 2008.
Experts place the blame on the sluggish recovery of the world economy. Speaking to Portafolio, Edgar Bejarano, an analyst at the Center for Development Research at the Universidad Nacional de Colombia, pointed to the shaky recovery in the U.S. and the difficult situation in Europe.
Julian Carderas, quoted by the same website, concurred, arguing that growth is uncertain in the developed world, despite signs of growth in the emerging economies. Most Colombians working abroad are based in the U.S. and Europe and are unaffected by growth in the developing world.