Remittance Flows Reach a Record High

Remittance flows from the United States to Latin America and the Caribbean reached an all-time high of more than $158 billion in 2025, according to an analysis by the Inter‑American Dialogue, a Washington-based think tank.

The surge marks the strongest growth in two decades and reflects a 27% jump in the average amount sent per migrant.

The increase was not driven by new migration. Instead, migrants already residing in the U.S. boosted transfers amid tighter immigration enforcement and policy uncertainty. Many sought to send larger sums out of concern over deportation risks and future income instability.

The expansion comes despite the introduction of a 1% tax on cash remittances imposed in mid-2025. While 80% of migrants hold bank accounts, more than 45% still rely on physical agents and nearly half prefer sending cash, underscoring persistent gaps in digital adoption.

Mexico stands out as the only major recipient registering a decline. More than 4% of previous senders stopped transferring funds, outpacing new senders, leading to lower inflows. In contrast, countries such as El Salvador, Guatemala, the Dominican Republic, and Jamaica posted gains largely tied to precautionary transfers.

Looking ahead, analysts warn of a potential slowdown by April 2026, alongside risks of additional taxes, regulatory scrutiny, and intensifying competition between traditional and digital remittance providers.