Jamaica’s net remittance growth levels continue to rise, even surpassing Mexico.

The latest data from the Bank of Jamaica (BOJ) showed that net remittance inflows for the month of October 2020 was US$252.2 million, which was an increase of 36.9 per cent or US$67.9 million relative to October 2019. This increase emanated from a jump in gross remittance inflows of 33.1 per cent or US$67.6 million.

The data for October 2020, which was released last week pointed to the fact that the steady growth levels that is being experienced was driven in part by a marginal decline of 1.6 per cent or US$0.3 million in outflows. The BOJ October 2020 bank remittance bulletin showed that companies were the primary driver for the increase in gross remittance inflows.

The data also showed that inflows through remittance companies for the month jumped by 38.1 per cent, while other remittances recorded a marked increase of 10.3 per cent for the month of October.

Big jump in net remittance inflow for April-October 2020

The remittance bulletin showed a big jump in net remittance inflows for the six month period April to October 2020. The jump of 31.6 per cent to US$401.1 million was much higher than the US$1671.8 million recorded for the corresponding period in 2019.

This increase resulted from a growth of 26.1 per cent or US$372.7 million in total remittance inflows, further driven by a decline of 18.1 per cent or US$28.4 million in total remittance outflows.

According to the BOJ, The improvement in inflows was primarily driven by an increase of 29.9 per cent in remittance companies, while other remittances recorded an increase of 6.6 per cent. The largest source market of remittances flows to Jamaica for October 2020 was the USA, whose share increased to 68.9 per cent, moving from 64.3 per cent recorded for October 2019.

Other source countries, which contributed a notable share of remittances for the month, were Canada at 10.6 per cent, followed by the UK and the Cayman Islands at 11.0 per cent and 5.8 per cent, respectively.

Jamaica tops Mexico in remittance growth

In giving a comparison with other countries for the period January to October 2020, the BOJ reported that Jamaica’s growth rate in remittance inflows of 19.3 per cent was higher than that of Mexico. Mexico registered a growth rate of 11.7 per cent, while Guatemala and El Salvador also registered growth for the period.

In the case of Guatemala that country saw an increase of roughly 5.1 per cent and El Salvador inched up by 2.6 per cent. Overall, the period of January to October 2020 period had remittance inflows totalling US$2.36 billion.