Key words: remittances; migration; employment provision; social stability.
Sources within the BCIE (the Central American Bank of Economic Integration) have leaked their concerns about the possibility that US President Trump may tax the remittances not only of Mexican nationals residing in the USA to their families in Mexico, but may also extend this tax to nationals of all the Central American states. There are serious concerns that the currently untrumpeted intention to tax remittances to pay for the construction of the Border Wall with Mexico could seriously affect the economies of Central American states which include the remittance statistics in their currency reserve projections. The knock-on effect of such an action would be extra hardship suffered by all those families whose major money-earner works in the USA.
A related economic issue arises from the BCIE’s estimate that Honduras needs to create 140,000 jobs this year in order to match demographic projections to the employment requirements of the economy. The best case scenario, however, suggests that a maximum of only 100,000 jobs could be created. Clearly, this has implications for social stability which in turn also has implications for attempted migrations northwards to the USA.