Remittances are really important for developing countries. Let’s break it down simply:
Money from Abroad: When people work in other countries and send money back home, it helps their country a lot. For example, in 2020, Mexico got around $40 billion from remittances. This money was a big help to their economy.
Trade Balance: The current account keeps track of how much money a country makes from selling and buying goods and services, plus the remittances. When remittances go up, they can help balance out when a country spends more than it earns. This helps keep the economy stable.
Overall, remittances are really important for many families and help keep the country's economy strong.
Remittances are really important for developing countries. Let’s break it down simply:
Money from Abroad: When people work in other countries and send money back home, it helps their country a lot. For example, in 2020, Mexico got around $40 billion from remittances. This money was a big help to their economy.
Trade Balance: The current account keeps track of how much money a country makes from selling and buying goods and services, plus the remittances. When remittances go up, they can help balance out when a country spends more than it earns. This helps keep the economy stable.
Overall, remittances are really important for many families and help keep the country's economy strong.