Central American Migrants Increase Remittances by 20% in Q1 2025, Driven by Fears of Deportation Under Trump’s Administration
Central American migrants in the United States sent significantly more money home in the first quarter of 2025, with remittances increasing by 20 percent compared to the same period last year, according to official data. Economists attribute this surge to migrants’ fears of potential deportation under President Donald Trump’s administration.
For many countries in the region, remittances form a crucial part of their economies. Guatemala, Honduras, El Salvador, and Nicaragua rely heavily on these funds, which make up a large portion of their GDP. Guatemala’s central bank reported a 20.5 percent increase in remittances, totaling $5.64 billion, while Honduras saw a 24 percent rise, receiving $2.62 billion. Data from El Salvador and Nicaragua also showed increases, with remittances up by 14.2 percent and 22.6 percent, respectively, in the first two months of 2025.
Experts, including Alvaro Gonzalez, President of Guatemala’s central bank, and local analyst Erick Coyoy, suggest the increase is driven by migrants’ concerns over deportation risks. While the exact reasons remain unclear, the rise in remittances may reflect efforts to secure savings in case of deportation or to support family members during uncertain times.
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