07:25 AM EST, 01/03/2025 (MT Newswires) -- In November around $5.44 billion entered Mexico through family remittances, an increase of 10.6% compared with the same month in 2023, noted BBVA Research.

Eight years ago, United States President Donald Trump's electoral victory for the first term generated a 25.8% increase in remittances in November 2016, explained by the "Trump Effect", due to threats of mass deportation and a possible tax on remittances, stated BBVA Research.

In November 2024, after his victory at the polls for a second term, it wasn't evident that this effect on remittances to Mexico existed, it added.

The World Bank estimated that in 2024 remittances worldwide reached $905 billion, which is an increase of 4.5% at an annual rate, higher than the growth recorded of 2.5% in 2023.

Latin America and the Caribbean have many countries highly dependent on remittances, and much of this flow comes from the US, pointed out BBVA Research.

Remittances as a proportion of gross domestic product in 2024 are very high in Nicaragua (27.2%), Honduras (25.2%), El Salvador (23.5%), Guatemala (19.6%), Haiti (18.7%) and Jamaica (17.9%). In Mexico, remittances represented 3.4% of the national GDP in 2024.

A massive deportation of migrants as threatened by President-elect Trump could affect the flow of remittances to Latin America and the Caribbean. However, it's a very unlikely scenario because it would affect the US economy, which depends on the migrant workforce and would increase inflation in that country, especially in food production, manufacturing, and preparation, according to BBVA Research.