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Jamaica’s remittance inflows, a lifeline for households across the island, fell sharply in October, registering an 8.3 per cent decline compared with the same month last year.
It reflects one of the steepest declines since the start of the 2020 pandemic. The contraction, amounting to US$21.4 million, coincided with the passage of Hurricane Melissa, which battered the island and disrupted financial channels that millions of Jamaicans rely on. Remittances are gifts sent to relatives and friends from overseas.
“The decline in total remittance inflows was attributed to lower flows,” stated the Bank of Jamaica (BOJ), which produces the monthly Remittance Bulletin.
According to the bulletin, net remittances stood at US$238.0 million for the month, down from US$259.4 million in October 2024. The decline was driven by a US$19.3 million fall in total inflows, alongside a modest increase in outflows.
Analysts point to Melissa’s impact on infrastructure and employment costing up to US$8.9 billion or 40 per cent of the island’s output or GDP. The storm’s timing proved especially disruptive. With airports temporarily closed, postal services delayed along with traditional remittances channels.
The decline was broad-based. Transfers via remittance companies fell 6.6 per cent, while “other remittances”, including flows through commercial banks, contracted by 9.2 per cent. Outflows, meanwhile, rose 10.5 per cent.
Following the passage of Hurricane Melissa on October 28, the island anticipates an influx of financial assistance, gifts and loans to support rebuilding, though the impact on November’s remittance flows remains uncertain.
Despite October’s setback, the fiscal year-to-date picture remains more stable. Net remittances from April to October totalled US$1.887 billion, a 1.2 per cent increase over the same period in 2024. Still, Jamaica’s modest growth contrasts with double-digit surges in Guatemala and El Salvador, underscoring the island’s vulnerability to external shocks.
The United States remained the dominant source, contributing 68.4 per cent of inflows, up slightly from last year. The United Kingdom, Canada, and the Cayman Islands followed, together accounting for more than a quarter of transfers.
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