The remittance engine for El Salvador's economy
According to statistics released by El Salvador's Central Reserve Bank, from January through August of this year, Salvadorans abroad have sent almost $5.065 billion in remittances to families back home. This was an increase of 3.6% from the same period in 2021. According to the Central Reserve Bank, $5.019 billion went towards consumption, in other words the purchase of basic household necessities. Only a small percentage, 0.9% or $46 million, went towards investment or savings so far in 2022.
Almost a half million households, or 1 out of every 4 families, in El Salvador receive remittance payments.
Although remittances arrive from Salvadorans living all around the world, 93.8% of the total remittances come from the United States.
Only 1.7% of the remittances arrived through digital wallets like the government's Chivo bitcoin app.
Remittances represent as much as 20% of the total Salvadoran economy.