Net Remittances Fell in 2022/23 Fiscal Year  

• Net remittance inflows of US$3,227.6Mn declined by 0.4% in FY 2022/23 relative to the corresponding period in FY 2021/22. This decline resulted from a reduction of 1.1% or US$38.6Mn in total remittance inflows partly offset by a decline of 10.6% or US$26.2Mn in total remittance outflows. The decline, according to the BOJ, reflects a normalization of inflows to pre-pandemic levels, and more cash-in-hand remittances via tourism.
• Following the 5.1% and 0.8% increases in January and February 2023, respectively, net remittance inflows increased by 2.1% in March 2023 relative to March 2022.
• This was primarily due to the US$6.6Mn or 2.2% improvement in total remittance inflows partly offset by an increase in remittance outflows of US$0.7 million or 4.0%. The increase in gross remittance inflows reflected 16.9% growth in inflows via ‘Other Remittances’ while inflows via Remittance Companies remained flat.
• The largest source market of remittance flows to Jamaica for March 2023 continued to be the USA. Remittances from the USA accounted for 71.7% of total flows, the same ratio recorded for March 2022.
• Jamaica’s balance of payments current account benefits from the stable flow of remittances. As a result, a falloff in remittances could result in the deterioration of the current account balance in the near future. With further declines in remittance inflows via remittance companies likely as more people travel with cash in hand, and elevated consumer prices weigh on remittance flows from major source markets the current account balance will be adversely impacted. This along with the large value of imports will sustain the balance in deficit, but a strong recovery in tourism receipts will help to partially offset it. The Current Account/GDP ratio was estimated at -3.3% in 2022 and is forecasted to be -3.0% in 2023.

(Source: BOJ & NCBCM Research)