Dominican Republic Sees 5.1% Growth in Remittance
- Remittances to the Dominican Republic reached $7.10Bn during the first eight months of 2024 (8M 2024), marking a 5.1% increase compared to the same period last year, according to the Dominican Republic’s Central Bank. In August alone, US$952.3Mn was received, reflecting a 10.7% rise from August 2023.
- The Central Bank highlighted the significance of remittances, primarily from the U.S., in boosting consumption, investment and support for vulnerable sectors. U.S.-based Dominicans sent US$713.5Mn back to the country, representing 82% of total remittances.
- The Central Bank also noted that favourable U.S. economic conditions, such as a slight decrease in unemployment and an expanding services sector, contributed to the remittance growth.
- The Dominican Republic expects to receive over US$10.50Bn in remittances by the end of 2024, with foreign exchange earnings projected to surpass US$42.60Bn in 2024.
- Jamaica, on the other hand, noted a decline in its remittance flows for 7M 2024. Total remittance flows of US$1.88Bn between January and July 2024, are 0.61% below the same period last year, likely attributable to the high base effects of the post-pandemic remittance surge to Jamaica.
- In Jamaica, remittances climbed to a historic high of US$3.5Bn in 2021, due to changing market conditions and restrictions under the pandemic that pushed more remitters to utilise the formal means of money transfers. Since then, the market has seen two years of shrinkage, to US$3.44Bn in 2022 and US$3.37Bn in 2023. Therefore, be noted that the marginal year-on-year decline is in line with a normalizing of flows that had increased significantly during the Covid-19 pandemic.
(Sources: Dominican Today & NCBCM Research)