Downtown San Salvador.
Thus far, in 2024, remittances to El Salvador are down 0.96% compared to 2023. According to the Central Reserve Bank of El Salvador (BCR), remittances to El Salvador as of March 2024 totaled $1895.7 million.
The figures from the Salvadoran Reserve Bank indicate that this year’s remittances have decreased by $18.43 million compared to the 1,914.10 million it received in the same months of 2023. Last year, remittances hit a record high, surpassing those of 2022 by $362.2 million.
In March 2024, El Salvador received $677.7 million in remittances, $34.57 million or 4.85% less than in March 2023.
| 2020 | 2021 | 2022 | 2023 | 2024 | Change 2023-2024 |
|
|---|---|---|---|---|---|---|
| January | 423.8 | 522.3 | 560.3 | 596.3 | 594.1 | -2.16 (-0.36%) |
| February | 448.5 | 510.2 | 579.9 | 605.6 | 623.9 | 18.30 (3.02%) |
| March | 435.5 | 688.2 | 685.1 | 712.2 | 677.7 | -34.57 (-4.85%) |
| April | 287.3 | 648.0 | 648.7 | 666.2 | ||
| May | 414.4 | 688.7 | 706.9 | 751.6 | ||
| June | 508.1 | 627.1 | 637.9 | 686.8 | ||
| July | 553.1 | 632.7 | 642.4 | 691.5 | ||
| August | 559.3 | 621.5 | 654.9 | 677.2 | ||
| September | 553.4 | 600.9 | 628.1 | 667.1 | ||
| October | 575.4 | 652.7 | 674.1 | 685.7 | ||
| November | 519.4 | 632.3 | 631.9 | 651.7 | ||
| December | 651.6 | 760.7 | 769.5 | 790.0 | ||
| Totals | 5929.9 | 7585.2 | 7819.6 | 8181.8 | 1895.7 | -0.96% *YTD |
| Average | 494.2 | 632.1 | 651.6 | 681.8 | 631.9 |
Economic analysts attribute the decrease in remittances to the rising cost of living in the United States, the primary source of remittances to El Salvador.
According to El Salvador’s Central Reserve Bank, over 95% of family remittances received in 2023 were transferred through banks and remittance companies. The remaining 4% were transferred using other types of payment services, including cryptocurrency wallets.
The principal country of origin of remittances is the United States, followed by Canada, Spain, Italy, the United Kingdom, and Mexico.
Remittances to El Salvador
Remittances sent to Salvadorans are pivotal in the nation’s economy, providing vital financial support to many families.
Data from the Multiple Purpose Household Survey (EHPM), published by the Salvadoran Ministry of Economy, indicates that 1.63 million Salvadorans benefit from remittances. Many of these people are in extreme poverty or relative poverty.
Remittances have increased steadily in the last decade; they are a big part of El Salvador’s Gross Domestic Product, GDP.
