Migrants in the United States have significantly increased their remittance transfers to their home countries in the first quarter of 2025, with a rise of around 20 percent, according to official figures released this week.
Economists suggest that this surge reflects growing concerns among Central American migrants about potential deportation under President Donald Trump’s administration.
For countries like Guatemala, Honduras, El Salvador, and Nicaragua, remittances from U.S.-based migrants make up a substantial portion of their economies, with nearly a quarter of their GDP derived from these funds.
Guatemala’s central bank reported a notable $5.64 billion in remittances for the first quarter of 2025, a 20.5 percent increase from the same period in 2024.
Similarly, Honduras saw a 24 percent jump, receiving $2.62 billion. While complete data for El Salvador and Nicaragua are still pending, preliminary figures for January and February show increases of 14.2 percent and 22.6 percent, respectively.
El Salvador received $1.4 billion, and Nicaragua, which also received remittances from Costa Rica and Spain, totaled $909 million during this period.
Experts, including Alvaro Gonzalez, the president of Guatemala’s central bank, believe the surge in remittances can be attributed to migrants’ fear of being deported from the U.S. Erick Coyoy, a Guatemalan economic analyst, echoed this view, suggesting that migrants’ actions were in response to the looming threat of deportation.
It remains unclear whether the increased remittance flow is an effort by migrants to ensure they can access savings if deported or to support their families while they can.
President Trump’s administration, which returned to power in January, has promised a historic wave of migrant deportations, contributing to the uncertainty among migrant communities.
In response, some Central and South American migrants have cut their U.S. journeys short and returned home.
