Point-to-point inflation in Jamaica has bent back close to the Bank of Jamaica’s target of 4-6 percent based on the February 2024 data released by the Statistical Institute of Jamaica, with a reading of 6.2 percent following monthly inflation plunging by 0.6 percent for the month and follows a fall of 0.10 percent in January.
The decline was influenced by the decreases in the index for the divisions ‘Food and Non Alcoholic Beverages’ (1.1 percent) and ‘Housing, Water, Electricity, Gas and Other Fuels’ (1.6 percent).
Negative inflation in February
Jamaica pulled US$3.44B in remittances in 2023
Remittance inflows to Jamaica, ended in 2023 at US$3.37 billion, down two percent compared to total inflows of US$3.44 billion in 2022, and representing the third consecutive year that remittances exceed $3 billion and the fourth since it has come close to $3 billion, in 2020 in hitting a then record high of US$2.9 billion, well above the previous high of US$2.4 billion in 2019.
Remittance inflows for December 2023 declined by 3.6 percent to US$314 million, compared with US$326 million in December 2022. The data was compiled from data released by Bank of Jamaica
Jamaica’s NIR slips in January but
Jamaica’s Net International Reserves (NIR) fell by US$79 million in January this year to US$4.679 billion from US$4.758 billion at the end of 2023 and is up US$703 million above US$3.976 billion at the end of 2022, but data indicates the country in a far better foreign exchange position than the previous two years.
The Bank of Jamaica NIR report, states that the reserves represent 23.6 weeks of Estimated Gross Official Reserves in weeks of Goods & Services Imports, down from 25.2 weeks in December 2022.
The decline follows the sale of $30 million to the market through the B-FXITT intervention on January 15th, $20 million on January 16th, $30 million on January 25 and US$20 million on January 26 totalling US$100 million and exceeding the reduction in the NIR in January, but the intervention seems to be on the decline since 2021. In January last year, the central bank intervened 5 times with sales of US$140 million and in January 2021 they pumped US$185.68 million into the system on six occasions.
Jamaica’s remittances exceed US$3B in 2023
Jamaica had total remittance Inflows of US$268 million in November last year, down 3.4 percent from US$277 million in November 2022, Jamaica’s central bank data show.
For the 11 months to November 2023, remittance inflows to the country amounted to US$3.064 billion, a decline of 1.6 percent compared to 2022 for the same period. The decline is just US$50 million short of the US$3.114 billion for the same period in 2022. The full 2023 outcome could fall short of US$3.4 billion based on the trend for the year to date and would be down on the US$3.44 billion that obtained in 2022.
Jamaica’s NIR jumps US$151M to record high
Jamaica’s net international reserves jumped US$150.6 million in December to end 2023 at a record US$4.75 billion, with the report indicating that the amount represents 34.8 weeks of imports, data released by Bank Jamaica is shows.
For the calendar year the NIR increased by US$770 million in 2023, that compares with a slight US$21 million fall in 2022 from 2021.
Soft remittance flows to end at $3.4B in 2023
Remittance inflows into Jamaica fell 1.9 percent in September to U.S$284.4 million and 1.2 percent for the year to date to just under $2.53 billion, this marks the 6th month of decline in remittances for the year to date, data from jamaica’s central bank shows.
With three months to go before the end of 2023, the market seems on track to be close to this US$3.44 billion of total inflows in 2022, with the absolute shortfall in remittances to date of just US$31 million adrift of the 2022 intake to September. The 1.9 percent fall in September is far less than the 5.9 percent decline that occurred in August and a 5.8 percent fall in April.
Worst fall for remittances
Remittance inflows to Jamaica in August slipped by 5.9 percent or US$18 million, the worst monthly decline for 2023, with total inflows of US$289, down from US$307 in August 2022, data out of the Bank of Jamaica show. The decline beats the 5.8 percent decline in April, with a slippage then of US$17 million.
So far, January, March and May are the only months with positive inflows compared with 2022.
In a year of primarily monthly declines, inflows are down by 1.1 percent or US$26 million to US$2.24 billion to August from US$2.267 million for the first eight months last year and now seem likely to come in just below the US$3.44 billion total inflows for 2022.
Remittances to Jamaica slip
Remittance inflows to Jamaica in July 2023 amount to US$303 million and represent a decline of 0.09 percent or US$2.7 million in comparison to July 2022 and is the 4th month of decline for the year to date, according to data released by the country’s Central Bank.
For the January to July 2023 period, remittance inflows to Jamaica amount to US$1,952 million, representing a decline of 0.4 percent compared to January to July 2022 when US$1,959 came into the country. Notwithstanding the decline for the year to date, the country is on track to match total inflows in 2022 of US$3.44 billion barring any major negative developments.