US election key to Latin American economies, says credit rating agency

Mexico metropolis — 

The destiny of Latin American economies, profoundly reliant connected remittances from the United States, hangs successful the equilibrium with the upcoming U.S. statesmanlike elections, Fitch Ratings said connected Friday.

Why it's important

The imaginable disparity successful migration policies betwixt the Republican and Democratic administrations could importantly impact Central American nations, which are heavy babelike connected remittances from the U.S.

Key comment

"Central America is highly susceptible to U.S. migration policies, arsenic remittances money a ample constituent of their economical activity," said Fitch, a U.S.-based recognition standing agency.

In countries similar El Salvador and Nicaragua, remittances presently relationship for much than 30% of their gross home product, the ratings bureau said, adding that Mexico is besides 1 of the largest recipients of remittances globally, wherever inflows person steadily accrued implicit the past decennary to adjacent to 3.5% of GDP, from 2%.

By the numbers

Remittances to Nicaragua person tripled successful the past 5 years, portion those to different countries, specifically El Salvador and Jamaica, person considerably slowed.

A survey based connected information from the U.S. Current Population Survey showed that a 1% summation successful the country's household net results successful a 0.2% to 0.3% summation successful remittances sent abroad.

Context

The U.S. elections could usher successful changes successful migration policies, with Donald Trump's run showing a willingness to restrict borderline crossings and summation deportations, portion the imaginable Kamala Harris medication would purpose to walk a bipartisan instrumentality to betterment the asylum process and bounds migration parole.

Policy changes could importantly impact migrants and the Central American economies that are heavy babelike connected the wealth they nonstop backmost location from the United States.