# Central American remittance growth deceleration

> Live situation record from CLSTR: https://clstr.news/situations/central-american-remittance-growth-deceleration
> Updated: 2026-09-25T22:48:26.000Z. Sources: 14. Developments: 2.

Central American economies are facing projected decelerations in remittance growth. While regional transfers to Latin America and the Caribbean rose from $72.6 billion in 2016 to $168.6 billion in 2025, experts anticipate a significant slowdown in the coming years.

In El Salvador, the growth rate is forecast to drop to 4.8% in 2026, a sharp decline from the 17.7% recorded in 2025. By 2027, growth rates across El Salvador, Guatemala, Honduras, and Nicaragua are projected to fall between 0% and 3%. These funds are vital to regional stability, representing significant portions of national GDP, including 34% in Honduras and 28% in El Salvador.

The Inter-American Dialogue attributes this cooling trend to factors such as a reduction in the number of migrants sending money, increased deportations from the United States, and lower growth in individual transfer amounts. Additionally, the evolving landscape involving digital assets necessitates new regional regulatory frameworks to manage transaction costs and anti-money laundering compliance.

## Timeline

### 2026-09-25: El Salvador remittance growth projected to slow in 2026

El Salvador faces economic headwinds as remittance growth is projected to slow to 4.8% in 2026, a significant drop from the 17.7% growth seen in 2025.

4 sources. https://clstr.news/cluster/el-salvador-remittance-growth-projected-to-slow-in-2026

### 2026-09-19: Central American remittances projected to face severe deceleration by 2027

Central American remittances are projected to slow to 0-3% growth by 2027, despite a 132% regional increase over the last decade, posing risks to economies heavily dependent on these funds.

9 sources. https://clstr.news/cluster/central-american-remittances-projected-to-face-severe-deceleration-by-2027

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Cite as: Central American remittance growth deceleration. CLSTR, https://clstr.news/situations/central-american-remittance-growth-deceleration
