IMF sees slowing US remittances to Latam going forward

NEW YORK, April 25 (Reuters) - The International Monetary Fund sees a decline in cash sent back home to Latin America by immigrant workers in the United States, with the effect being especially hard on Central America.

"We expect remittances to decline going forward," said Rodrigo Valdes, director of the IMF's Western Hemisphere Department, during the presentation of the regional economic outlook in Washington.

He said the decline amounts are an "open question" and that currently those remittances are increasing, though that is seen by the fund as temporary.

"This would be a challenge for the economies to manage, since this is a shock that is probably more persistent," Valdes said, adding the decline will be mostly felt in Central America.

Some Central American countries including El Salvador, Honduras and Nicaragua receive over 20% of gross domestic product in remittances.