The authoritarian government of Nicaragua experienced an increase of close to 12 percent in the amount of remittances sent by emigrants to the country in the first quarter of 2024. The growth was mainly driven by remittances from the United States, according to a report from the Nicaraguan newspaper La Prensa.
Statistics from the Central Bank of Nicaragua revealed that remittances sent to the country in the first three months of 2024 totaled $1.14 billion, showing an 11.8 percent increase from the previous year. Of this amount, $930.7 million came from the United States, accounting for 81.6 percent of the total. Nicaragua continues to lead in Central America in terms of growth in remittances received.
The influx of remittance funding to Nicaragua has been significant since 2023, with many Nicaraguans fleeing the country due to repression under the communist regime led by dictator Daniel Ortega. Remittances have become a crucial source of funding for the regime’s struggling economy.
In 2023, Nicaragua received a record-breaking amount of remittances, totaling 4.32 billion euros, with a majority coming from the United States. Reports indicate that the Ortega regime benefits both economically and politically from the increase in remittances.
Analysts point out that remittances serve as a form of social policy for the communist regime, easing internal unrest and providing economic activity without the need for additional social policies. The expenses paid for with remittances contribute to the regime’s taxation revenue, helping balance the budget.
Overall, remittances play a significant role in the Nicaraguan economy, benefiting various sectors and contributing to the regime’s financial stability.
