Guatemala growth and TPS: remittances, US aid and what it means
Guatemala’s economy sped up in the first half of 2026 and remittances hit a new record. But the US protected status that underpins much of that money is disappearing — here is exactly where it stands. The post Guatemala growth and TPS: remittances, US aid and what it means appeared first on The Rio Times .
In 2026, Guatemala's economy is expanding faster than the previous year, according to the Bank of Guatemala's Monthly Index of Economic Activity (IMAE), which grew 4.4 percent between January and May. The country's gross domestic product (GDP) also increased by 4.5 percent in the first quarter of 2026 compared to the same period in the prior year.
Central American migrants working legally in the United States sent home Q117.8 billion (approximately US$15.45 billion) between January and July, a 6.6 percent increase from the same period last year. The remittances reached Q194.6 billion (approximately US$25.53 billion) in 2025, and the central bank anticipates around Q204.3 billion (approximately US$26.81 billion) for 2026, marking a 5 percent rise.
The US, through its Department of Homeland Security, has released half of its aid to Guatemala, El Salvador, and Honduras, contingent on meeting ten conditions related to good government, corruption, human rights, rule of law, and migration cooperation. These conditions were approved by Christopher Landau, the Deputy Secretary of State, on 6 August 2026. The certification was also published in the Federal Register on the same day.
Guatemalans who reside in the United States under Temporary Protected Status (TPS) will continue to be covered by the permit, which expires on 9 September 2026. However, for Honduras and Nicaragua, the protection ended on 8 September 2025 and has not been renewed. The US government issued no official announcement regarding its decision, though some argue that a six-month extension under a provision of the law has automatically extended the TPS for these countries.
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