Remittances are 6% of GDP

[NewsWhore]

The world of remittances is changing and it is constantly weakening. Despite the fact that the money sent represents 6% of the nation's GDP, it has a limited impact on savings and investment, as reported in El Caribe. During a meeting organized by the Dominican-French Chamber of Commerce, Edigarbo Garcia, vice-president of Remesas Dominicanas, part of the BHD Group, said: "There are no formal government policies geared to promote the productive use of the flow of remittances that could make a positive impact on the nation's development." He added that remittances are at US$3 billion a year, down by 7% since 2008. Commenting on the effect the money has on the country's development, Garcia said that 73% of the money goes on food and less than 5% goes into savings. He noted that 60% of the recipients are women. It was also revealed that 42 out of every 100 Dominican homes receive a remittance payment, and the recipients are lower middle and low-income families. Overall, the Dominican Republic receives 7% of all the remittances sent to Latin America, with 70% of the money coming from the United States and 20% from Europe. Garcia suggested the creation of policies that would promote the recipients' involvement in self-help programs like micro-businesses and other initiatives.

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