Tuesday 24 November, 2020

Remittance inflows continue to outpace 2019

File photo of a Western Union remittance outlet in Jamaica.

File photo of a Western Union remittance outlet in Jamaica.

The freshly released Bank of Jamaica (BOJ) report for remittances for the month of July 2020 indicates that inflows continue to climb year over year.

January to July 2020 remittance inflows totalled US$1555.1 million, central bank data shows. This compares to US$1371.8 million registered in the comparative January to July 2019 period.

For July 2020, net remittance inflows of US$274.7 million increased by 43.8 per cent or US$83.7 million relative to July 2019.

This improvement is largely reflective of an increase in gross remittance inflows of 37.2 per cent or US$79.4 million as well as a decrease of 19.2 per cent or US$4.3 million in outflows, according to the BOJ.

The increase in gross remittance inflows emanated from increases of 43.6 per cent and 6.3 per cent in remittance companies and other remittances (inclusive of bank transactions).

From April to July 2020 - net remittance inflows of US$916.6 million increased by 27.0 per cent or US$194.6 million relative to the previous corresponding period.

This improvement, the central bank said, resulted from a 21.2 per cent or US$172.8 million increase in remittance inflows, further driven by a decrease of 23.1 per cent or US$21.8 million in outflows.

The increase in inflows was attributable to a growth of 25.0 per cent in remittance Companies and a marginal increase of 1.8 per cent in"Other Remittances".

As to the source of remittance inflows, the BOJ indicates that the largest source market of remittances to Jamaica in July 2020 remained the US, whose share increased to 67.0 per cent, from 64.8 per cent recorded for July 2019. 

Other source countries which contributed a notable share of remittances for July 2020 were Canada at 11.1 per cent, followed by the UK and the Cayman Islands at 10.8 per cent and 7.3 per cent, respectively.

Compared to other countries in the region, for the period, January to July 2020 Jamaica’s growth rate in remittance inflows of 13.4 per cent was marginally higher than that of Mexico, which registered a growth rate of 11.4 per cent.

Meanwhile, Guatemala registered a lower growth rate of 1.4 per cent and inflows to El Salvador declined by 4.6 per cent.

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