Central American migrants in the United States sent home around 20% more in remittances during the first quarter of 2025, according to official data released this week. Economists suggest that this increase reflects migrants’ growing fears of deportation under President Donald Trump’s administration.
In countries like Guatemala, Honduras, El Salvador, and Nicaragua, remittances make up a significant portion of the GDP, with nearly one-quarter of the economic output in these impoverished nations relying on money sent by relatives living in the U.S.
Guatemala’s central bank reported $5.64 billion in remittances for the first quarter of 2025, a 20.5% increase compared to the same period in 2024. In Honduras, the central bank noted a 24% rise, with $2.62 billion sent home during the same period.
While El Salvador and Nicaragua have yet to release full data for the first quarter, figures from January and February show an increase of 14.2% and 22.6%, respectively, compared to the previous year. El Salvador received $1.4 billion, and Nicaragua saw $909 million in remittances during the first two months of the year.
Nicaragua’s remittance total includes money sent not only from the United States but also from Costa Rica ($68.2 million) and Spain ($48.6 million).
Guatemala’s central bank president, Alvaro Gonzalez, linked the increase in remittances to migrants’ concerns about potential deportation from the U.S. Economic analyst Erick Coyoy echoed this view, suggesting the surge was a “reaction to the perceived risk of deportation.”
It remains unclear whether migrants are sending more money home to ensure their families have savings in case of deportation, or if they are attempting to help relatives take advantage of their situation in the U.S. while they still can.
Trump returned to the White House in January with a promise to initiate the largest wave of migrant deportations in U.S. history. As a result, some migrants from Central and South America have cut short their journeys to the U.S. and returned home, driven by fears of impending deportation.
