The remittance mystery

Planet Money explores the recent surge in remittances to countries like Honduras, Guatemala, and El Salvador, despite a crackdown on immigration in the U.S. and a decrease in new migrants. The podcast investigates this "remittance mystery," considering factors like a proposed remittance tax, fear of deportation, and the ease of sending money via apps. They find that the fear of deportation is a primary driver, with immigrants sending savings back home in anticipation of potential removal. The surge, however, is not uniform, as remittances to Mexico are falling due to different immigration patterns and legal statuses. While the increased remittances are currently boosting Central American economies, experts warn of potential future economic challenges if this flow decreases, emphasizing the need for sustainable economic growth beyond reliance on remittances.