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America's immigration crackdown is disrupting the global remittance market

Release Date
2025-10-28
Media
npr
Summary
Economist Dean Yang argues that the Trump administration’s recent anti-immigration measures may harm developing countries more than U.S. foreign aid cuts. Migrants who move to wealthy countries like the U.S. can dramatically increase their earnings, and many send large remittances back home. These remittances far exceed U.S. foreign aid spending and are a crucial economic lifeline for many countries. In 2022, immigrants in the U.S. sent about $80 billion abroad.

However, with fewer immigrants entering the U.S. and more deportations occurring, remittances are likely to fall. This poses serious risks for countries such as Honduras, Nicaragua, El Salvador, and Guatemala, where remittances make up 20–27% of GDP and are vital for economic stability. These nations are already fragile, so reductions in U.S. remittances could have severe social and economic consequences.
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United States of America

News Articles including "United States of America"

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Article Title
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2025-01-31
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