Importance of family remittances in Salvadoran households and their territorial distribution, 20217-2023

Abstract

Family remittances are a significant economic resource for Salvadoran households and serve as a buffer in domestic markets. This underscores the importance of studying their behavior and territorial distribution. This research is based on data from the Central Reserve Bank (BCR) and the Multipurpose Household Survey (EHPM). These data indicate that remittances represent, on average, 23.9% of the Gross Domestic Product (GDP) and account for an average of 29.2% of household consumption over the past seven years. According to BCR data (2023), in terms of territorial distribution, family remittances are mainly concentrated in the central and eastern regions of the country, particularly in the departments of San Salvador and San Miguel. Additionally, households receiving family remittances account for 23.9% of all Salvadoran households. These remittances are primarily received by households that are not in poverty as well as those experiencing relative and extreme poverty, where remittances serve as a vital source of income for their survival. It is important to highlight that family remittances enable households to access goods and services to meet their needs.