Remittances and household finance
A recent article in La Prensa Grafica explores the importance of remittances, the money sent from relatives living and working abroad, in supporting Salvadoran families. The article pulls data from the recent 2010 multi-purpose poll of households conducted by the Salvadoran government.
Some of the statistics:
- More than 337,000 families in El Salvador receive remittances, equalling 21% of the households in the country.
- 91.6% of the families direct their remittances towards consumption, while only 1.4% say they save some or all of what they receive from abroad.
- Remittances constitute 17% of the national economy, one of the highest levels in Latin America.
- Remittances have reduced levels of poverty in El Salvador. 70% of of the households which receive remittances are not in poverty.
- Most households receive between $46 and $113 per month in remittances.
- More than 90% of Salvadorans have a relative living in the US.