According to a report by Corficolombiana analysts, the figure rose to US$8.6 billion in the third quarter.

The Bank of the Republic published this Monday the information on the inflow of remittances into the country and, as of the third quarter, they totaled US$ 8,680.24 million. Between July and September alone, US$ 3,052.70 million entered the country.

During the first quarter of the year, the figure was US$ 2,720.77 and, in the second quarter, it was US$ 2,906.77. According to a report by Corficolombiana analysts, this year money transfers from abroad reached record figures, reaching US$ 11.8 billion, an increase of 17.2% compared to the previous year and almost double what was recorded in 2019.

Remittances are current transfers made by emigrants to their country of origin, whether in cash or in kind, and are part of the current transfers recorded in the Colombian Balance of Payments, according to the Bank of the Republic.

A blog by the entity mentions that remittances have increased in recent years at rates higher than the growth of economic activity, "which has led to their proportion with respect to the gross domestic product (GDP) reaching a historical maximum of 2.8% in 2024, when a decade ago they barely represented 1.1% of GDP."

According to the bank, remittances are also consolidated as the second source of income of dollars to the country, below the US$ 15.6 billion represented by oil and above the US$ 9.2 billion represented by coal.

The growth of remittances has made them an important support for Colombian families, reaching 3.6% of disposable income and 3.9% of household consumption by 2023. It is worth mentioning that remittances increased from less than one million people in 2016 to 2.1 million Colombians in June 2024.

The figures that explain it all

Remittance flows to Colombia have grown at an accelerated pace since 2021, driven by several factors:

• Migration on the rise : Between 2021 and 2024, Colombian migration abroad grew by an average of 5.4% annually. In 2024, 365,000 net departures from the country were recorded, equivalent to almost 1,200 people per day.
• Robust economies in the US and Spain : These two countries, which account for 67% of remittances to Colombia, ended the year with economic growth rates of 2.8% and 2.9%, respectively. In addition, their job stability (unemployment at 4.1% in the US and 11.6% in Spain) allowed migrants to maintain their income and send money regularly.
• Impact of the exchange rate : The depreciation of the Colombian peso against 11,900 has significantly increased the value of remittances in local currency. In 2024, these transfers reached $48 billion, an amount 2.4 times higher than that recorded in 2019.

What are the challenges with this push?

Despite the optimism, there are significant challenges to remittance flows going forward. The uncertainty generated by Donald Trump's second administration in the United States, with proposals such as a possible 10% tax on remittances, poses a risk.

However, analysts expect the impact to be gradual and manageable in the short term, especially given that the former president's anti-immigration policies did not significantly reduce Colombian migration during his first term.

For its part, the group of analysts at Banco de Bogotá pointed out that the implementation of stricter immigration measures could moderate the growth of these flows.

Among the risks is the proposal to carry out a “large deportation” that, although ambitious, faces legal and logistical limitations. During his previous administration (2017-2021), Trump's immigration measures failed to significantly reduce net migration from Colombia. However, Banco de Bogotá emphasizes that the current context, with legislative majorities and a more experienced work team, could allow progress in the execution of these policies, impacting the flow of migrants and, therefore, remittances to the country.

Another key challenge is ensuring that remittances do not perpetuate economic dependencies or are used for illicit purposes. According to the United Nations Office on Drugs and Crime (UNODC), a portion of these transfers could be linked to illegal activities. This problem underscores the need to strengthen controls and promote the productive use of these resources.