Remittances set to beat 2023 inflows


Remittance inflows to Jamaica are on track to beat 2023 inflows partially due to an increase of US$6 million or 2.3 percent in total inflows of US$266 million in November last year. November is the second consecutive month of increase and the third in four months.

Remittance inflows for 2024 to November amassed US$3.059 billion, an increase of just 0.1 percent over the similar period in 2023. It seems set to exceed the US$3.3 billion generated in 2023. If achieved, it would be the first year since the massive increase in 2021 that there has been an annual increase.

More decline in Jamaican interest rates


At the most recent Bank of Jamaica auction for Certificate of Deposits (CDS) on Wednesday, interest rates averaged 5.99 percent, following an offer of $39 billion, the average rate is fractionally lower than the Central Bank’s Overnight (ON) rate of 6 percent, a signal that the BOJ will cut it ON rate when they meet in February.

A total of 326 bids were received by the central bank amounting to $62.42 billion, with rates ranging from 7.98 percent down to 5.5 percent. The highest submitted bid had a rate of 7.90 percent, but the highest rate obtained by successful investors was 6.2 percent. Today’s rate is up from 5.94 percent at last week’s auction when only $6.5 billion was offered, with bids of just over $32 billion.

At the end of the auction the total amount of 30 days CDs that are outstanding amounts to $126.5 billion and is down from $129.5 billion last week.  

Remittances climb in October


Remittance inflows to Jamaica climbed 3.7 percent to US$279.6 million in October 2024, from US$270.7 million in the similar 2023 period, with inflows of US$2.794 billion for year to October, slipping marginally from US$2.796 billion in the similar period 2023. 

Remittances inflows to Jamaica which ended at US$2.4 billion in 2019 surged to US$2.9 billion in 2020 peaking at US$3.497 billion in 2021 and have remained above $3.3 billion since and are on track to match the US$3.37 billion received in calendar year 2023.
“Remittances from  the United States accounted for 67.7 percent of total flows, down from 69.5 percent share recorded for October 2023. Other source countries which contributed a notable share of remittances for the month were the United Kingdom 11.0 percent, followed by Canada 10.7 percent and the Cayman Islands 6.2 percent”, data released by Bank of Jamaica (BOJ) show.

“Jamaica’s decline of 0.1 percent for the calendar year to October 2024, compares to growth of 8.6 percent, 2.3 percent and 0.8 percent recorded for Guatemala, Mexico and El Salvador, respectively, BOJ stated.

Inflation spikes again in December


Prices in Jamaica rose sharply in December, last year by 1.2 percent for the month, up from 1 percent in November, with the yearly inflation coming in at 5 percent, data from the Statistical Institute of Jamaica shows. The annual increase for 2024 is well below the 6.9 for 2023 and firmly within the 4-6 percent target the country’s central bank, Bank of Jamaica is mandated to defend.

The spike in December comes ahead of the busy high demand period leading up to Christmas as well as shortages for many agricultural items emanating from loss of production caused by the passage of Hurricane Beryl in July.

“The primary contributor to this increase was a 1.9 percent increase in the index for the ‘Food and Non-Alcoholic Beverages’ division. The increase in the division’s index was chiefly influenced by a 5.5 percent upward movement in the index for the class ‘Vegetables, tubers, plantains, cooking bananas and pulses’. While higher prices were observed across all classes within the division, the increase was notable for items such as sweet pepper, sweet potato, tomato, cabbage and eggs,” Statin stated.

`Tourist arrivals to Jamaica drop in 2024


Passenger traffic traversing Kingston’s Norman Manley international Airport climbed a robust 13.8 percent last December to 177,400 up from 155,900 in December 2023 and grew just by 1.7 percent, from 1,748,100 in 2023 to 1,777,100 in 2024 Tourism Analytics.com reports, quoting data form Grupo Aeroportuario del Pacifico, operators of in Jamaica two major airports.

The Montego Bay region, the tourism capital of Jamaica did not fare as well as the country’s capital city, suffering a 5.6 percent decline in total passenger traffic in December 2024, with 467,400in December 2024, down from 495,000 in December 2023. For the calendar year, Montego Bay’s Sangster’s International Airport saw total passenger movements sliding 3 percent, from 5,211,700 in 2023 to 5,057,000 in 2024.

 Declining Tourist arrivals slow in November

International Terminal Passengers climbed 7.8% at the Kingston’s Norman Manley International Airport in November to 132,800 from 123,200 in the same month in 2023 and for the first 11 months of the year passenger traffic inched 0.5 percent higher to 1.6 million from 1.59 million in 2023, data from Grupo Aeroportuario del Pacífico, operators of the two major international airports in Jamaica disclosed.

Developments for the major tourist entry point into the island continue to be negative, days away from the start of the winter tourist season. For the year to date, traffic declined 2.7 percent to 4.59 million incoming and outgoing passengers from 4.72 million last year, helped by a 7.4 percent drop in November to 373,900 from 403,600 last year. Importantly, the decline has slowed from October, with an 8.8 percent decline and September 11.9 percent.
Some developments were key to the decline, starting in April this year, with a 4.5 percent fall in traffic through Montego Bay. Mentioned was made of travel advisory out of the US market, but importantly, Easter a high level travel time, came in late March in 2024 compared with the start of the second week in April 2023. More importantly, the passage of Hurricane Beryl and continuous rains since and the holding of the elections in the USA would have kept many potential travellers from vacationing until after the high level rains and the November for elections workers.  Importantly, Jamaica was not the only country with falling passenger traffic within the region.

Remittances climb 3.6% in August


Remittance inflows to Jamaica increased 3.6 percent in August this year to US$299.6 million from US$289 million in August 2023 data out of Bank of Jamaica show.

For 2024 to date, total remittance inflows, are almost back on par with the same period in 2023, as inflows to August this year came in at US$2.239 billion, down marginally from US$2.241 billion last year.

Jamaica’s NIR at record US$5.6 billion

Jamaica’s net international reserves climbed sharply in October, to a record high of US$5.596 billion up by $395 million from $5.2 billion at the end of September.

Reserves climbed by $200 million in September from August to a then record high. Although not stated, it appears that the rise is coming mainly from the proceeds of the bond issue supported by future airport rental income, with the Bank of Jamaica report showing claims on the government sector falling by nearly US$300 million in October, an indication that the rise in the NIR is related to the government.
The reserves now represent 41.4 weeks of imports of goods and 28.2 weeks of imports of goods and services.

More declines for Jamaica Tourism


Tourist numbers continue to deteriorate in Jamaica with passenger traffic passing through the critically important Sangster International Airport in Montego Bay, falling a significant 8.8 percent in October to 319,300 from 350,000 in 2023.

For the capital city of Kingston, traffic passing through the Norman Manley airport rose a solid 8.5 percent to 139,600 from 128,700 in October 2023 and for the year to date a decline of 0.2 percent from 1,467,600 to 1,464,500 in October, this year.  experienced a year to date decline by 2.2  percent from 4,313,200 passenger traffic in October 2023 to 4,216,400 with just two more months left in the year, data from Grupo Aeroportuario del Pacífico operators of the two major international airports in Jamaica reveal in their preliminary data release.

Remittance inflows jump in August

Remittance inflows to Jamaica climbed or 3.6 percent by US$10.4 million to US$299.6 million from US$289.2 million for the same period in 2023 and represent the third month of the year with an increase.
August is the month with the highest inflows for 2024 to date. Remittance inflows to Jamaica amounted to US$2.24 billion, a decline of 0.1 percent versus the January to August 2023 period with inflows of $2.241 billion.