Money
JM | Jun 7, 2022

Net remittance increased by 0.3% in April

/ Our Today

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A Jamaican man completes a transaction at a Western Union location. Western Union operates in Jamaica under the GraceKennedy Financial Services Division. (Photo: gracekennedy.com)

Durrant Pate/Contributor

Net remittances are up 0.3 per cent in Jamaica to US$271.6 million as at April 2022, which represents a US$0.9 million increase over the US$270.7 million recorded in April last year.

At the same time, the island’s total remittance inflow amounted US$288.9 million, a 0.1 per cent decrease from the US$289 million booked twelve months earlier. The decrease in total remittance inflow was due largely to a 0.9 per cent decrease in ‘Remittance Companies’ to US$252.8 million compared to US$254.9 million in 2021.

However, this was offset by a six per cent increase in ‘Other Remittances’ to US$36.1 million, up from the US$34 million recorded in 2021. As travel returns, the small reduction in remittance inflows is partially due to decreasing cash in hand remittances.

Increased living costs in the key source markets also played a role. ‘Total Remittance Outflows’ decreased 5.8 per cent or US$1.1 million to US$17.3 million in comparison to the 2021 booking of US$18.3 million.

US remains largest source of remittance flow to Jamaica

The Bank of Jamaica (BOJ) reports that during the period under review, the United States was the largest source of remittance flow to Jamaica, accounting for 71 per cent of total remittance inflow, down from 72.3 per cent recorded in April 2021. Canada contributed 9.9 per cent, the United Kingdom with 9.7 per cent and Cayman Islands with 5.9 per cent.

Additionally, for the calendar year to April 2022, net remittance totalled US$993.6 million, a 1.9 per cent decrease relative to the US$1.01 billion for the comparative period last year. According to the BOJ, the decrease was a result of a one per cent, or US$11.2 million, decline in total remittance inflows.

This was partly offset by an increase of 9.7 per cent or US$7.8 million in total remittance outflows. The decrease in total remittance inflow was driven by a decrease in ‘Remittance Companies’ by 2.5 per cent while ‘Other Remittances’ increased by 9.3 per cent.

In comparison with other countries, for the period January-April 2022, remittance inflows decreased by one per cent to total US$1.08 billion. Jamaica’s one per cent decline in remittance is lower than Guatemala at 24.9 per cent and El Salvador with four per cent growth.

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