The Daniel Ortega regime’s strategy of encouraging mass immigration of Nicaraguans to the United States appears to be working to stave off the collapse of an economy currently in deep recession.
After almost two years, the Central Bank of Nicaragua (BCN) reported this Thursday that remittance income closed the first four months at 1,394.6 million dollars, a 60.9 percent increase compared to the same period last year, which was 866.5. million..
The main source of income growth comes from the immigrant community in the United States, from where 1,131.4 million dollars entered the Nicaraguan economy, an increase of 83 percent compared to 618.8 million dollars in 2022.
In fact, 80.8 percent of the total remittances received in April ($374.3 million) came from the United States ($302.5 million), 6.4 percent from Costa Rica, 5.6 percent from Spain, 1.2 percent from Panama and 0.7 percent from Canada. That represented 94.8 percent of the global total, according to BCN.
Based on persecution and state repression, the Ortega regime has pushed more than 300,000 Nicaraguans abroad, with the United States being the main destination for this wave of migration, which, although it began in 2018 after a sociopolitical crisis, was accentuated last year.
Massive labor plane
The migrant boom caused by the dictatorship saw only 3,164 Nicaraguans apprehended in fiscal year 2020, according to data from the U.S. Customs and Border Protection (CBP), however, it shot up in the following fiscal year. 50,722.
So far, fiscal year 2022 is the peak period of Nicaraguan immigration to the United States, with 164,600 fellows captured; In the current fiscal year — which began last October and runs through September this year — 108,986 Nicaraguans have already been detained at the borders.
In other words, the regime’s persecution of the people, especially the people who oppose the government, now the dictatorship is benefiting the economy, especially domestic consumption, historically a credit of remittances, a fact that has already been repeated. , when the central bank reported remittances of $3,224.9 million, higher than the $2,146.9 million received in the previous year.
Remittances received in the first four months of this year reached $1,851.4 million received in all of 2020, a year that has not yet accelerated the mass exodus of Nicaraguans who are also fleeing the impact of a three-year recession. The economy (2018-2020), with massive increases in the cost of living, high unemployment and stagnant wages.
The growth rate of Nicaragua’s remittances is essential to guarantee the regime’s fiscal stability in its national accounts and exchange rate stability. A headache for America.
In a report for the first quarter of remittances from BCN, Nicaragua had the highest rate of increase in these incomes in Central America, higher than the average for the region, which stood at 11.6 percent through March.
For example, Guatemala, the largest recipient of remittances from Central America, particularly the United States, saw a 12.6 percent increase in the first three months of this year compared to the same period in 2022, while Nicaragua was up 61.3 percent. Three months of this year. Reference period.
Another is El Salvador, which saw a 5.7 percent increase in remittances quarterly; Honduras 9.2 percent increase; and the Dominican Republic at 3.8 percent.
Remittances in Nicaragua under the Ortega administration have not only reduced poverty levels, but have also been necessary to curb social discontent, maintain tax collections and mitigate the impact of unemployment, experts have explained. However, they warn that the economy will suffer from labor flight in the immediate future.
Behavior of other regions
The increase in accumulated remittances through April was mainly explained by increased inflows from the United States and Costa Rica.
From Costa Rica, $102.9 million entered, an increase of 21.8 percent. Meanwhile, declines were reported in Spain (-5.2 percent) and Panama (-16 percent).