Communist dictatorship Nicaragua saw a nearly 12% increase in remittances sent to the country by migrants in the first quarter of 2024. Some sources say it is primarily driven by remittances from the United States. report Published in a Nicaraguan newspaper la prensa on sunday.
According to statistics from the Central Bank of Nicaragua (BCN), remittances sent into the country in the first three months of 2024 totaled $1.14 billion, an 11.8% increase from $1.02 billion in the same period in 2023. did.
According to the report, of the $1.14 billion received in the first quarter of 2024, $930.7 million came from the United States, accounting for a staggering 81.6% of the total. According to BCN, this increase means that Nicaragua continues to be the Central American country with the highest increase in remittance receipts.
Since 2023, Nicaragua has seen a dramatic jump in remittances received by locals from overseas Nicaraguan nationals who have fled or been expelled from the communist regime.Dictator Daniel Ortega turned around Remittances are an important source of funds for the economically strapped regime.
la prensa It is estimated that around 800,000 Nicaraguans have left the country in recent years as demonstrations in April 2018 saw thousands of Nicaraguans take to the streets to demand an end to communism in their country, and President Ortega’s crackdown intensified. ing.
2023, Nicaragua received Remittances from families totaled a record 4.32 billion euros ($4.6 billion), nearly 30 percent of Nicaragua’s gross domestic product (GDP). Of the total, $3.56 billion came from the United States. Nicaragua received a total of $3.22 billion in remittances in 2022, equivalent to 23% of GDP.
Although the overwhelming majority of remittances came from the United States, Costa Rica, Spain, Panama, and Canada were all listed as top sending countries. Combined, the five countries accounted for 97.4% of all remittances.
report published in 2023 detailed how the Ortega government benefits economically and politically from increased remittances.
Nicaraguan analyst Jose Davila explained to the outlet. Nicaragua Investiga At the time, Ortega’s main benefit from the migrant crisis caused by the communist regime, and the surge in remittances it brought, was to quell domestic unrest.
“It seems like a perfect job for the regime to have Nicaraguans leave the country en masse in search of freedom and send money back to their families,” Davila said.
Nicaraguan economist Enrique Sáenz said remittances would be a “social policy” for the communist regime, as increased economic activity meant Ortega “didn’t have to do anything” in terms of wages or social policy. It’s working,” he said.
“These consumer expenditures mean that Nicaraguan businesses, from neighborhood hair salons, grocery stores, and barbershops to supermarkets, bean and corn producers, and more, expect market growth through the income of these families.” “I would not have been able to buy it without the remittances,” he continued. “This contributes to reducing social and political unrest.”
Saenz also emphasized that all goods and services paid for through remittances generate direct income for the regime, which is subject to taxes such as value-added tax (VAT) to balance the communist regime’s budget. He said that it was helpful.
“This will definitely help the Nicaraguan economy in the sense that it will cover household consumption and within that consumption taxes will be paid on many goods, either at a fixed price or with added value,” Saenz said. It is funded by remittances, which contribute to tax revenue. ”
Christian K. Caruso is a Venezuelan writer who chronicles life under socialism. You can follow him on Twitter here.
