The Bank of Jamaica (BOJ) is reporting that the country’s net remittance inflows of US$250.3 million declined by 4.1 per cent or US$10.6 million in comparison to August of 2020, the first month of reduced flows for 2021.
However, for the January to August 2021 period, remittance inflows to Jamaica grew by 25.4 per cent. Overall inflows for the January to August 2021 period totalled US$2,300.6 million.
BOJ in its monthly remittance report, states that the deterioration in the month of August emanated from a decrease in total remittance inflows of 2.4 per cent or US$6.8 million.
At the same time, there was an increase of 20.0 per cent or US$3.7 million in outflows. The BOJ stated that the decrease in gross remittance inflows resulted from a reduction of 6.4 per cent in inflows via remittance companies partly offset by an increase in inflows via other remittances of 22.2 per cent for the month of August. Other remittances include commercial banks.
The largest source market of remittance flows to Jamaica for August 2021 was the USA, which accounted for 70.0 per cent of total flows up from 66.3 per cent recorded for August 2020.
The data from the BOJ showed an eight-month improvement of 25.4 per cent for Jamaica was lower than that of Guatemala which registered a growth rate of 38.5 per cent. Similarly, El Salvador and Mexico registered a growth of 34.8 per cent and 25.7 per cent, respectively, for the eight months.