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Caribbean remittances holding up
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WASHINGTON, USA: REMITTANCES may be one of the few bright spots in the economic scheme of things in Barbados and other Caribbean countries as the region confronts a slowdown in tourism, a fall-off in foreign direct investment and a drop in commodity prices.

That assessment came from economists and other key experts in the United States and international financial institutions in Washington who track remittances to the Caribbean and elsewhere.

Dr Richard Bernal, alternate executive director of the Inter-American Development Bank in Washington, said that despite the predictions of many experts, remittances to Jamaica, Barbados, Guyana and other countries in the area were holding their own.

"There is good news on the remittance front in the sense that everybody was projecting a very sharp decline in the remittances" said Bernal, who until recently was the head of the Regional Negotiating Machinery.

"Remittances are one of the difficult things in economics to predict but in the case of the Caribbean, they have held up fairly well. The fact that they have held up to date isn’t a basis for projecting into the future. That would depend on the state of the countries from which Caribbean people send remittances"

Remittances to Barbados, according to the World Bank, were estimated at US$1 billion in recent years. Since the turn of the century, that is between 2000 and 2007, remittances from workers, compensation of employees and migrants’ transfers reached an estimated US$972 million. The bank had no figures for 2008.

However, US$169 million in "outward remittance flows" left Barbados during the same period.

Remittances to Jamaica, now the top source of foreign exchange, surpassed US$10 billion mark in those years. The Dominican Republic tops the region when it comes to remittances, followed by Jamaica, Haiti and Guyana in that order.


caribbeannetnews.com

February 2, 2009 | 6:16 PM Comments  0 comments

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