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Trump’s Twitter Threat Sparked a Remittance Boom in Guatemala

  • Central bank revised up remittances projection for the year
  • Finance industry and construction to lead growth through 2020
Donald Trump
Donald TrumpPhotographer: Andrew Harrer/Bloomberg

U.S. President Donald Trump’s threats to impose remittance taxes and tariffs on Guatemala last month helped boost remittances sent to the country to the second-highest monthly total on record.

Guatemalans living mostly in the U.S. sent home $948 million in July, up 15.8% from a year ago. Central bank President Sergio Recinos said Trump’s threat prompted Guatemalans in the U.S. to send home money ahead of any possible new taxes. The bank has since revised up their projection for 2019 remittance growth to a range of 9.5% to 12.5%, from 7.5% to 10.5% previously, he said.