Many Happy Returns: Remittances and their Impact

By Kristin Johnson, Ph.D.

Millions of immigrants in the U.S. send billions of dollars in remittances to friends and family members in their home countries each year. While it is easy to assume that this represents a huge loss for the U.S. economy, the relationship between remittances and the U.S. economy is much more complex than meets the eye. It’s true that remittances are an important source of income for immigrant-sending countries, but remittances are also a huge boost to U.S. exports and the U.S. economy. The following IPC Special Report reveals the economic benefits of remittances to both developing nations and the U.S. economy.