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Remittance inflows to Jamaica hit a record for January, with total inflows of US$255.5 million this year following an increase of US$9.5 million or 3.9 percent in total of US$246 million in 2024.
The previous best January for inflows was in 2023, when total inflows amounted to US$248.6 million, data released by Jamaica’s Central Bank show. Remittance inflows to Jamaica in 2024 amounted to US$3.358 billion.
Total remittance inflows into Jamaica, a major source of foreign exchange earnings for the country, rose 1.3 percent to US$254 million for February 2024, up from $250 million in February 2023, reversing months of decline since May 2023, data released by the country’s central bank show.
The moderately improved inflows pushed the year to date performance above 2023 with a marginal increase to $499.6 million from $499 million.
For February, the United States of America accounted for the bulk of the inflows at 69.6 percent, down from 71.7 percent in January. The UK followed with 10.8 percent, Canada with 8.5 percent and Cayman Island with 6.8 percent.
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.
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.
Jamaica’s Central Bank in downtown Kingston
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.
Remittances inflows to Jamaica surged to US$3.18 billion for the first 11 months of 2021 after pulling in US$274.5 million in November, an increase of 15.6 percent or US$37 million over the comparative period in 2020, data out of the Bank of Jamaica shows.
The performance for November puts the total intake for 2021 above the US$2.9 billion hauled in for January to December 2020. The outturn for 2021 seems set to exceed $3.5 billion for the year when the final numbers are tallied for December.
Based on the performance to date and the consistency of the monthly increase the 2021 inflows seem set to exceed by $1.1 billion the inflows of US$2.406 billion the country received in 2019 and just over $600 million more than the total for over 2020.
Data show Jamaica receiving around $2 billion more inflows in the last two years over and above the trend up to 2019. Between 2007 and 2019 inflows grew around US$1 00 million per annum, with no growth in inflows in 2015, 2017 and 2018. The increase in 2020 and 2021 broke the trend of low growth experienced since 2007.
Persons within the financial sector attribute the increased flows to a number of factors including many Jamaica who lives abroad buying real estate and contributing to the building boom in Jamaica others are of the view that the transfer of funds by the government’s fiscal stimulus to individuals, primarily in the United States is also a big contributor.
Jamaica continues to benefit from a big surge in remittance inflows that started in May last year and is continuing with a big 28.7 percent jump to US$309 million in May this year, from $240 million in May last year.
This year’s performance is important as it was in May 2020 that the big upsurge in inflows commenced, with May 2020 inflows rising by 15.7 percent over 2019 inflows, bettering the decline recorded in March and April last year to the same months in 2019. For the year to date, total remittance inflows are up an incredible 42 percent over 2020 to reach US$1.4 billion for the five months period from US$987 million in 2020.
With the final seven months of 2020 generating inflows of $1.9 billion, total inflows for the current year should exceed US$3.4 billion and is likely to move closer to $3.9 billion based on the outturn for June this year over 2020.
Persons and businesses interested in foreign exchange developments for Jamaica should pay keen interest in what is happening in this market segment. If the remittances this year hold in 2022, with the rebound in stopover visitor arrivals set to return to normal levels in that year as well, would Jamaica be in a comfortable position for the central bank to build up reserves handily and it could also lead to some revaluation to the local currency.
Remittance inflows for January and February this year to Jamaica grew by 29.8 percent from US$367 million to US$477 million, and now seems set to push total inflows to more than US$3 billion for the year and the first time ever that this landmark would have been reached, having hit US$2.9 billion in 2020.
Total remittance inflows for February rose 27 percent to US$236 million from US$186 million in 2020.
The gains this year come in contrast with the similar period last year US$3 billion hat grew by 9 percent over 2019, well off the 30.85 percent average monthly increase between May and December last year.
In 2020, April numbers fell nearly 10 percent versus inflows for April 2019 and could jump sharply in 2021, thereafter the big surge in inflows will probably return to more moderate growth levels in keeping with recent growth rates that have been lower than 10 percent.
Net remittance inflows for January this year jumped a massive 39 percent or US$63 million above the January 2020 inflows to US$224.4 million, data from Bank of Jamaica shows.
The sharp increase follows from the strong rise seen since May last year when inflows grew 41.6 percent, with the remaining months of the year increasing over thirty percent, except November that grew by 19 percent. For January this year, gross remittance inflows grew 32.7 percent or US$59.4 million to US$241 million. The trends suggest that the country could see earnings from this are exceeding US$3 billion for the first time, having grossed US$2.9 billion in 2020 and increased by US$500 million or 21 percent. According to data out of Jamaica’s central bank from 2013 up to 2019, remittance inflows have grown by an average of US$57 million per annum or 3%. The year with the highest increase was 2014 when a four percent rise delivered provided the country with a $92 million increased inflows and the year with the lowest increase was 2017 with an increase of just $14 million for a one percent rise.
Tourism is Jamaica’s largest earner of foreign exchange.