Ecuador has received approximately 28 28 billion in remittances from Ecuadorians living in other countries, including the United States, Spain, Italy, Mexico, Chile, Peru, Colombia, the United Kingdom, and France, over the past 10 years. This price does not include the amount that came in the last quarter of last year, as the central bank has not yet released that information.
To demonstrate the relevance of the contribution, it can be compared to the influx of foreign investment at the same time, which was about 8 8.8 billion. In other words, remittances, the fruit of the efforts of the natives, were 318% higher Estimates for 2021 indicate that remittances will exceed USD 4 billion annually for the first time in history.
Most of these resources are used to support their families in Ecuador. We should not forget that migrants send more money when their families go through a crisis in the country, such as the one caused by the Kovid epidemic.
That money goes to their children’s education, debt repayment and at least some savings and investments. The latter is concentrated in real estate and there are a few instances of companies or enterprises being set up by this population.
The state, year after year, has not had a sustainable policy to direct this capital gain towards productive investment. There are specific initiatives from the popular and strong economy, to train the recipients in financial education so that they get more revenue from that money.
Currently, due to the war between Russia and Ukraine, more than three million Ecuadorians living in the United States (not considered illegal), Spain and Italy are facing high inflation in those countries. This increase in prices reduces the purchasing power of our immigrants, who are looking for additional jobs to help them and do not stop sending remittances to their families to help them in their crisis or to buy goods or cancel loans for illegal immigrant travel. Your contribution is relevant to Ecuador.