Remittances to low- and middle-income countries reached a record high in 2018 of $529 billion, up 9.6% from 2017, according to the World Bank. They are expected to reach $550 billion in 2019, making them higher than all foreign aid. Remittances can be equal to one fifth of country’s gross domestic product.
The global average cost of sending $200 is around 7%. New internet money transfer systems could greatly reduce these costs.
About 80% of the remittances from the United States (total outflow $68B) goes to Mexico and Central America. Total inflow of remittances (from all countries) to Mexico, Guatemala, Honduras and El Salvador rose 70% between 2010 and 2018 ($55.4B).