Migrant remittances

This paper analyzes the impact of migrant remittances on certain macroeconomic variables. To this end, a panel of countries making up the SADC economic zone (excluding Zambia and Zimbabwe) constituted our analysis sample. It was shown that remittance cycles exhibit non-significant counter-cyclical behavior with the output gap, and significant counter-cyclical behavior when combining the two series (cycle and trend). In addition, remittances have been found to positively influence real GDP per capita, smooth private consumption in times of crisis, boost the supply of bank credit to the economy and encourage private investment. On the other hand, remittances only exacerbate inflationary pressures in the medium and long term.