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Brazil is one of the world’s fastest-growing economies, and a South American powerhouse. Rich both culturally and in natural resources, Brazil is known worldwide for its love of soccer and its Carnaval celebrations. Widely recognized to be the prime destination for investors in the Americas, Brazil nevertheless remains plagued by poverty and 1 in 12 Brazilians lives under the poverty line.
Impact of remittances on families
46% of Brazilian remittances are used by families to cover daily expenses, and 8% for housing/rent. These remittances have gone a long way in improving the living standard of Brazilian families throughout Brazil. The purchasing power parity difference between Brazil and the United States remains wide – 1 USD can only pay for ¼ cup of Starbucks in the States, while in Brazil, the same amount can buy a cup of cappuccino. This is why remittances (though seemingly small) – each transaction is about $700 on average – have done so much for Brazil both socially and economically.
Impact of remittances on societies
Brazilian remittances have enabled more Brazilians to pursue an education that they might not have been able to otherwise. 14% of these Brazil remittances are used for the purpose of education, which has done much to increase the literacy rate and general level of education of Brazilians. The increased living standards brought about by greater discretionary income as a result of remittances have also done much to improve the social environment of Brazil. In recent years there has been a sharp drop in violent crime and poverty in the country.
Impact of remittances on the economy
Brazil is known for its economic growth in recent years, a large part of which can be attributed to the burgeoning entrepreneurship in the country. This increase is in part due to the rising number of Brazilians who are deciding to invest and/or start up businesses, many of them using the capital that they have obtained through remittances from loved ones abroad. 11% of remittances to Brazil are used for investment purposes, and 4% for savings, which might then be used as capital for investment in the future. Remittances have indeed done much for the Brazilian economy.
The contribution of Brazilian Americans
650,000 Brazilians currently live and work in the United States. Their median annual income is over $35000, while most remittance recipients earn less than $10,000 a year. This stark discrepancy is the reason why so many Brazilians have decided to migrate to the United States in order to seek a better life. 50% of all remittances to Brazil are from the United States. Brazilian Americans have contributed in no small way to the social and economic growth of their homeland through the money they remit home.
The Brazilian diaspora is large. 1.5 million Brazilians live and work abroad, and remit money home to Brazil regularly. Many of the recipients are the family members of overseas Brazilians; an indication of the strong ties to their homeland that many overseas Brazilians still retain.
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Send USD$ to Brazil from the United States with Sharemoney. Select Brazil to begin.
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