National/Household Foreign Currency Income from Remittances Continues to Increase

Although the regional economy still faces many risks, remittances from overseas Chinese continued to grow in August. Spain, the United States, and Brazil accounted for the largest share in the total revenue of this segment during the period.

Data from the Central Bank of Paraguay (BCP) show that household remittance foreign exchange earnings in August totaled US$54.6 million, an increase of 25.1% from the cumulative US$40.9 million in the same period last year.

The increase in remittances from compatriots abroad comes after a relative improvement in the global economy following a severe crisis in 2022 caused by intense pressure from the war in Ukraine.

Inflation affects people’s real income.

Mentu, a consulting firm, said that in order of highest participation, the origins of remittances were Spain, the United States and Brazil, with these three countries accounting for 80.8% of total remittances that month. Spain was the country with the highest shipments, totaling US$247.7 million, accounting for 61.4% of the total.

The country surpassed the United States by $191 million and ranked second, accounting for 14% of total shipments, while the shares of other countries did not exceed 10%. Brazil stands out as remittances from the country tripled, but considering its influence, Spain had the biggest impact, with a year-on-year increase of 31.6%.

Analysts mentioned that remittances allow receiving households to finance consumption, so it is important to pay attention to the evolution of the economy of the country of origin. In Europe and the United States, the economic situation remains complex, while at the regional level, more encouraging data were recorded at the end of the third quarter.