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The remittance mystery

In the midst of a tightening U.S. immigration policy, an unexpected financial trend is unfolding: remittances to certain Central American countries are surging, defying economic logic and raising urgent questions about what drives these flows and what happens when they dry up.
Despite increased deportation fears and reduced migration, remittances to countries like Honduras have sharply risen, driven by anxiety over potential displacement and a looming tax on transfers. Unlike more settled immigrant groups such as Mexicans, Central Americans—facing greater legal uncertainty—are sending more money home, often shifting funds into savings. This influx has boosted local economies, with remittances nearing 25% of Honduras’s GDP. However, this dependence creates vulnerability. Economists warn of long-term risks including reduced government accountability, weakened export sectors, and economic instability if policies restrict migration further. With projections of a 10-13% drop in remittances ahead, the region may face a crisis unless structural reforms and job creation take root. The story reveals how fear, family loyalty, and policy intersect in shaping global money flows.
09:24
09:24
Remittances rise even as migration and wages remain stagnant
12:33
12:33
Fear of deportation makes immigrants send more money as a precaution
18:44
18:44
Remittances account for nearly 25% of Honduras's GDP in 2025
25:17
25:17
Remittances have helped households but not spurred macroeconomic growth in Honduras.