In Guatemala, funds grew 4.5% to $4.3 billion, the smallest increase in nine years according to the central bank. Remittances contribute about 11% of the country’s GDP.
In El Salvador, remittance flows reached $3.8 billion in 2008, up 2.5% on the previous year, according to the central bank. That compares with a growth rate of 6.5% in 2007. About 2 million Salvadorians live in the US, the country’s main trading partner.
Despite the worrying trend, Guillermo Handal, El Salvador’s finance minister, says that the country’s economic fundamentals are solid.
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