As per the Remittances Stats, one in every ten people around the globe is directly associated with remittances. The U.S. is the largest remittance source country that witness outflow of $42 billion annually. Among the various regions of the world, the Latin America has the largest and fastest growing remittance flow. It received approx 40% of remittance sent to developing countries. In fact, the remittance to Latin America exceeds the foreign investment and development aid. The economy of the Latin America depends largely on the remittances flow. The rapid increase in Latin America is gradually slowing with more Latin American immigrants are adopting U.S. society and thus sending less money home.
The Migrants who are earning into foreign locations remit on average 12.6 times a year. The average remit amount is in the range of $150/200/250 every time. These remittances are used by the family, friends or relatives in the home country for their daily expenses. These remittances make up to 10% of their household income. A quarter of remitters usually send money their earned money home first, prior to paying their own bills. The remittance rates have shown good growth in spite of downfall of U.S. economy.
Generally, the remittances increase at times of the slow economy of home country where it can be used as an effective anti-poverty tool. These remittances promote the economic growth, community development and increased investment in home country. Moreover, remittances can also lead to inflation and higher interest rates. As per the remittances data, nearly 46% of all Hispanics that are born outside US, send money to their home country. Nearly, 57% of immigrants from El Salvador send remittances and around 60% of U.S. remittance senders are male. Around 64% of people who are employed constitute unskilled labourers and 45% say they would go back to their home country.