Govt: Remittances to grow 5% this year

Remittances sent to Colombia are expected to grow around 5% this year compared to 2004, the Colombian government said in an official study. Remittances are to expand to US$4.04bn in 2005 compared to US$3.86bn last year, the report said. Remittances continue to grow in importance relative to other economic inputs in Colombia. The transactions were equal to 23.4% of total exports in 2004 and 92% of petroleum exports, which have traditionally been the country's principal source of international capital. Some 80% of remittances sent to Colombia are spent immediately on food, education and public services. The remainder is saved, invested or used to pay off debt, the government quoted a World Bank report as saying.