The Central Bank of the Dominican Republic (BCRD) reported that in March 2021 remittances registered US $ 994,900,000, a sum that exceeds by US $ 474,800,000 to those received in March 2020.
This means that for the first quarter remittances were received for US $ 2,548.7 million, a growth of 49.6% With respect to the same period of 2020, and 46.2% with respect to the first quarter of 2019.
Benefits of the American economy
The BCRD explains that the increasingly favorable economic conditions in the United States, country where 87.0% of March flows came from, Remains the main factor that has affected the behavior of remittances.
The institution emphasizes that one of the most important aspects of the US economy is employment, the figures indicate that in March 916,000 new jobs were created, thus registering an unemployment rate of 6.0% , after being up 6.2% in February. In particular, Hispanic unemployment in the United States decreased from 8.5% in February to 7.9% in March 2021.
Similarly, the impact of the financial assistance provided by the US government to its population, benefiting the Dominican diaspora, is highlighted. In this regard, it is noted that with the approval in the United States of the “American Rescue Plan” introduced by President Joe Biden, Dominicans living in the United States were even more benefited.
This rescue plan, launched last March, consists of a stimulus package valued at $ 1.9 trillion in additional assistance for individuals, small businesses and local and state governments, implemented for the purpose of increasing direct transfers.
Another important factor in understanding the behavior of remittances is that between March and April 2021 in the United States there are also government tax refunds, which further affects the disposable income of Dominicans in this country.