Remittances from Peruvians in Spain resist the financial crisis and stay stable

By:Johan van Ginhoven

Remittances from Peruvians living in Spain to their families in Peru have not been affected greatly, in frequency or in sum per remittance, according to a survey.

The average sum per remittance stays around 220 Euros, although due to a slight drop in its frequency (which is more than 10 times per year), the annual total sum could drop slightly to 2.280 Euros.

Prior to the crisis, agriculture was an important sector for employment, but a transfer occurred towards construction, where wages were higher. Today, with the high crisis impact in such a sector in Spain, workers are returning to the land and hotel industries.

The level of remittances has not changed much because those who were unemployed got a new job almost immediately, which was possible due to the fact that a Latin American immigrant gets on the average 1.000 Euros per month, while the Spanish workers get an average of 30% more. Nonetheless, remittances could be affected in the future if the crisis is prolonged.

On the other hand, Peruvians in Spain are more deeply rooted, compared to other immigrants, since they are more willing to bring their families to reside in Spain; furthermore, they are purchasing housing more than other groups, which implies their willingness and intention to settle in Spain.

97.7% of Peruvians interviewed in Spain said they have an actual job whereas only 88.5% of the total immigrant sample in that country said they were working.

According to the data of the Peruvian central bank (BCR), total incoming remittances to Peru in the first quarter of 2009 were approximately US$535 million dollars.

In the first quarter of last year, total remittances were US$572 millions. In the second quarter, US$615 millions; in the third, US$630 millions; and in the fourth, US$621 millions.

It is estimated that a bit over 50% of working immigrants in Spain come from Latin America. Of those, 9% are Peruvians and are, on the average, 39 years old or about four more years than the average Latin Americans.

One out of four Peruvians (26%) who live in Spain has obtained a mortgage, while the average of total immigrants living in Spain is about 15%.

In personal loans, four out of ten Peruvians has obtained one to purchase artifacts or vehicles.

Remittances from Peruvians in Spain resist the financial crisis and stay stable3.954

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