Slight Fall in Jamaica’s Remittance Inflows for March 2024

• Remittance inflows, which support consumer purchasing power, external account stability, and economic growth, fell for the month of March 2024.
• Net remittances to Jamaica declined by 1.1% (or US$3.1Mn) to US$279.2Mn in March, reflecting a US$4.1Mn (1.3%) decline in total remittances inflows, partly offset by a decline in remittance outflows of US$0.9Mn (4.7%). The decrease in gross remittance inflows reflected a -2.0% (or US$5.0Mn) decrease in inflows via Remittances Companies.
• The United States of America remained the largest source of remittance flows to Jamaica for March 2024. Remittances from the USA accounted for 69.8% of total flows, down from the 71.7% share recorded for March 2023.
• Other source countries that contributed a notable share of remittances for the month were the United Kingdom (10.6%), followed by Canada and the Cayman Islands (8.7% and 6.7%, respectively).
• Net remittance inflows for the 3-month period (January- March) also declined by (0.4% or US$3.5Mn) relative to the same period last year to US$797.1Mn. Despite the decline, 2024 remittances remain above 2019 (pre-pandemic) levels, with reported total inflows increasing by 43.5% (or US$241.8Mn) from US$555.3Mn in the corresponding period in 2019.
• This decline likely reflects normalisation of remittance flows following increases in 2020 and 2021, driven by stimulus packages issued by relevant government agencies in major source countries, as well as reduced disposable income due to higher inflation.
• Furthermore, with more Jamaicans employed, the need to send remittances may be diminished. Additionally, increased travel by Jamaicans from the diaspora bringing cash in hand may have also contributed to the decline.

(Sources: BOJ and NCB Research)