IDB Report Projects 9.2% Remittance Growth for the Caribbean in 2025

• The latest Remittances to Latin America and the Caribbean in 2025 report from the Inter-American Development Bank (IDB) Group projects continued growth in diaspora-to-region transfers, signalling a solid year ahead for Caribbean remittance inflows.
• The report projects a 9.2% y-o-y increase in remittances income for the Caribbean sub-region in 2025, though more moderate than expected jumps in Central America (20.4%). Total remittance flows across all Caribbean countries are projected to hit approximately US$20.88Bn in 2025.
• Remittance income in Caribbean countries accounted for 12% of the total received by the LAC countries, a share similar to that in recent years.
• The strongest individual showing comes from the Dominican Republic, which is expected to receive US$11.97Bn alone, more than half of the region’s total inflows. Following behind on the regional leaderboard, Haiti is projected as the second largest recipient, with US$4.90Bn, arriving ahead of Jamaica($3.65Bn) and Trinidad and Tobago($0.36Bn).
• North America continues to dominate as the primary source of funds. The United States accounts for 50.4% of all remittance transfers to the Caribbean, followed by Canada at 10.2%.
• Across the Caribbean, remittance contributions to GDP are projected to rise from 9.2% in 2024 to 10.0% in 2025, largely driven by a 1.3 percentage point increase in the Dominican Republic. In Haiti, however, the share of remittances in GDP fell by 3.6 percentage points.
• Beyond the forecast, the damage caused by Hurricane Melissa in Jamaica in late October is likely to have a positive impact on the flows of remittances into the island. This will impact not only Jamaica but also the Caribbean total, as Jamaica represents 17% of remittances to the subregion.

(Sources: Inter-American Development Bank)