Remittances: An economic bridge between countries and cultures

Remittances: An economic bridge between countries and cultures Remittances, that financial flow that crosses borders, play a vital role in the local and regional economy of Latin America. At the end of last year, our country received US$ 4.446 billion, 19.9% more than in 2022. This is a historical record according to the Central Reserve Bank of Peru (BCRP), impacting the national economy and boosting consumption. This constant flow of money from abroad not only benefits the receiving families, but also has a significant impact on the national economy, contributing to the growth and development of the country. In addition to the increase in remittance receipts, there has been a greater dynamism observed in the money leaving the country, which is largely attributed to the migration of students abroad. This phenomenon demonstrates the commitment of Peruvian families to the academic and professional development of their members, as well as the importance of maintaining economic and emotional support from a distance. Spain has become the main route related to education, highlighting the relevance of the internationalization of academic training. Another factor that has contributed to the increase in remittance shipments is the trend towards importing products, especially those from Asia. This strategy aims to diversify the sources of goods and services in the country, showing the adaptability and global vision of Peruvian entrepreneurs. Integration into international value chains is key to meeting the demands of the domestic market and maintaining competitiveness in a globalized and changing environment. At a regional level, Latin America and the Caribbean have witnessed a continuous evolution in the behavior of remittances. According to the World Bank, countries in the region received $156.000 billion in remittances during 2023, representing an 8% increase from the previous year. This flow of money reflects the strength and resilience of Latin communities abroad, as well as the confidence in maintaining a vital connection with their beneficiaries in their countries of origin. It is important to highlight that the impact of remittances varies depending on the economic and political context of each country. In the case of Argentina, a notable increase in money transfers to Peru has been observed, while with Ecuador, political uncertainty has led to growth in money transfers to the Peruvian market. These movements reflect the interconnection between the economies of the region and the influence of external factors on the flow of remittances. The phenomenon of remittances reflects the evolution of economies towards a more collaborative and unrestricted environment, where mutual support and market expansion are facilitated through technological innovation. It is expected that digital platforms will continue to play a crucial role in this process, facilitating economic connectivity and promoting the development of a more inclusive and accessible global economy for all. In an increasingly interconnected world, remittances represent an economic and cultural bridge that strengthens ties between countries and communities, driving growth and prosperity in the region.