Latin America | Remittances to Argentina, Colombia & Peru: US migration impact. 2025

Summary

The new US immigration policies will have a heterogeneous impact on remittances to Argentina, Colombia, and Peru. Although migration flows will slow down, remittances will remain a vital source of income, with a gradual adjustment in Colombia and Peru, and marginal effects in Argentina.

Key points

• Key points:
• Most migrants from the analyzed countries arrived in the US before 2010, have high labor participation rates, and over half own their homes, reflecting strong roots that mitigate the risks of new immigration policies.
• In 2024, remittances represented 2.8% of GDP in Colombia and 1.7% in Peru, consolidating as a central source of external income, while in Argentina their weight was only 0.2% of GDP.
• Colombia stands out for receiving 53% of its remittances from the US, followed by Peru with 42%. In contrast, Argentina receives less than 30% of its transfers from this origin, showing less exposure to the US cycle.
• Projections for 2024-2026 anticipate a 13% dollar growth in remittances to Colombia, 7.5% for Argentina, and 5.2% in Peru, compensating for the weakness from the US with transfers from other destinations.
• The 1% tax on remittances in the US, which will take effect in January 2026, will have a limited impact on total flows, as it will only apply to physical cash transfers and not to electronic ones.

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