In April 2021, the Dominican Republic received US$910.8 million in remittances, US$515.8 million more than in the same period of 2020, the month that suffered the largest drop in remittances due to the covid-19 pandemic, according to the Dominican Central Bank (BCRD).
These additional remittances, according to economist and consultant Henri Hebrard, undoubtedly encourage greater consumption and in turn contribute to a “faster” recovery of the local economy.
“Remittances to the Dominican Republic: still great news for so many families in need,” said Hebrard on his Twitter account.
This source of money received by Dominican families, generally the lower income segments, from abroad has a strong impact on the finances of those households, due to its multiplier effect and dynamism in the market for goods and services. Among them, education, food consumption and other basic products.
Data provided by the Central Bank indicate that, cumulatively, between the first four months of this year, remittances totaled US$3,459.5 million, US$1,361.3 million above the same period of 2020, reaching a 64.9 % year-on-year growth.
“One of the main factors that has influenced the behavior of remittances is the improvement of economic conditions in the United States, where most of the Dominican diaspora resides,” said the monetary authority.
From this North American country came 86.6% of the flows in April. Before the pandemic, this participation hovered between 75.0 and 80 percentage points.
