2024-09-10 23:15:16
More than 67% of the amount of remittances received in the first quarter of 2024 came from the United States; followed by 16% from Spain. The level of remittances fell almost 7% compared to the fourth quarter of 2023. While remittances totaled $1,393.7 million, only $78.3 million of Foreign Direct Investment arrived in the same period.
According to the latest balance of payments report, prepared by the Central Bank of Ecuador (BCE)during the first quarter of 2024 (January to March), $1,393.7 million in remittances from migrants abroad arrived in the country.
This amount is 6.8% lower than the $1,496.2 million reached in the fourth quarter of 2023 (October to December); but compared to the first quarter of 2023, there is an increase of almost 17%. For this reason, remittances at the beginning of 2024 are the third highest amount since 2022.
Of the more than $1.3 billion in remittances during the beginning of 2024, more than 67%, or $983.8 million, came from the Ecuadorian migrants in the United States.
Secondly, more than 12% of remittances, or $227.7 million, came from Spain. From Italia$40.2 million (less than 3%) was received. $142 million came from other destinations.
On the other hand, remittances from Ecuador were sent to other countries for $174.8 million. The main destinations of these remittances were: $69 million to Colombia; $52 million to Mexico; $14 million to Peru and $40 million to other countries.
Remittances exceed Foreign Direct Investment by 17 times
At the end of 2023, LA HORA analyzed that, for every $15 sent by migrants, only $1 arrived Foreign Direct Investment (FDI) to Ecuador in the last year.
By the beginning of 2024, the ratio had increased to 17 to 1, or $17 in remittances for every dollar in FDI.
According to the latest balance of payments report prepared by the ECB, between January and March 2024, $78.3 million of FDI arrived. This is an increase of 157% compared to the same quarter in 2023; but it is still a very low level. Until 2022, driven by sectors such as mining, Ecuador, on average, attracted $100 million of international capital each quarter.
During the first quarter of 2024, the four countries that invested the most in Ecuador were: Swiss ($21.8 million), Peru ($21.2 million); China ($11 million) and Chile ($6.5 million).
If analyzed by type of activity, more than 57% of the FDI that came to the country was concentrated in transport and storage ($23 million) and mining ($22 million). (JS)
By: LA HORA Newspaper