The Central Bank of the Dominican Republic (BCRD) reported that remittances from the United States reached 994.9 million dollars, an amount that exceeds 474.8 million in comparison to those received in March 2020.
In the first quarter, remittances reached 2,548.7 million dollars, a growth of 49.6% compared to the same period in 2020, and 46.2% compared to the first quarter of 2019.
The BCRD explains that the increasingly favorable economic conditions in the United States, where 87.0% of the flows in March came from, continues to be the main factor that has influenced the behavior of remittances.
The institution emphasizes that one of the most relevant aspects of the North American economy refers to employment, whose figures indicate that 916,000 new jobs were created in March, thus registering an unemployment rate of 6.0%, after having been in 6.2% in February. The unemployment of Hispanics in the United States decreased from 8.5% in February to 7.9% in March 2021.
Similarly, the impact of the approval in the United States of the “American Rescue Plan” introduced by President Joe Biden, which benefited the Dominican diaspora.
This rescue plan, launched last March, consists of a stimulus package valued at 1.9 trillion dollars of additional assistance for individuals, small businesses, and local and state governments, implemented with the purpose of increasing direct transfers.
Another important factor to understand the behavior of remittances is that between the months of March and April 2021 in the United States, government tax refunds are also made, which additionally affects the disposable income of Dominicans in that country.