Narayan AmmachchiLatin America is witnessing a sharp rise in remittances from the United States, Bloomberg reports, attributing the surge to migrants accelerating money transfers amid fears of mass deportations under President Donald Trump’s second term.
According to data from the Inter-American Dialogue, the region is projected to receive US$161 billion in remittances this year — an 8% increase over 2024.
However, the trend is uneven across the region. BBVA Research data show that in May 2025, remittances to Mexico fell 4.6% year-on-year to US$5.3 billion — the steepest decline in over a decade. By contrast, Guatemala (US$2.28 billion, +15.2%), Honduras (US$1.05 billion, +19.1%), and El Salvador (US$899 million, +17.7%) all recorded historic highs.
Economists cited by Bloomberg warn that a new wave of deportations could eventually wipe out billions in remittance flows. Yet for now, the opposite is happening.
As U.S. authorities intensify immigration raids and offer hiring bonuses to new agents, many undocumented migrants are sending their savings home to safeguard them from possible seizure. More than 180,000 deportations have already occurred this year, according to the report.
Local financial institutions are also benefiting. Banks such as Banco Ficohsa and Banco Azteca are promoting digital remittance channels and dollar-denominated savings accounts to attract inflows.
According to Bloomberg, the remittance boom is providing a crucial boost to Honduras’s economy, helping families build homes, launch small businesses, and invest in tourism projects — even as uncertainty continues to shape the lives of migrants in the United States.
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