JAMAICA’S net remittance inflows rose by 2.8 per cent in June 2025, continuing a trend of modest growth that underscores the sector’s resilience even as the number of service providers sharply contracted, according to the latest Bank of Jamaica (BOJ) bulletin.

Net inflows reached US$267.5 million for the month, up US$7.2 million from June 2024, the data showed. For the April-to-June quarter, net inflows totalled US$830.6 million, a 3.8 per cent increase year-on-year.

The steady inflow of funds from abroad remains a critical pillar of Jamaica’s economy, far surpassing foreign direct investment and covering nearly half of the import bill. However, the bulletin reveals a significant consolidation within the industry that services these money flows.

The number of active remittance locations fell to 492 in 2024 from 514 the previous year. This was driven by a wave of exits, with licenses relinquished or revoked surging to 83 in 2024 from 46 in 2023. Concurrently, new licenses issued plummeted by nearly 50 per cent.

“The data points to a market maturation,” said an analyst who reviewed the bulletin. “Smaller players are exiting, but the volume of transactions is growing, suggesting a consolidation of market share among larger, more efficient operators.”

The growth in June was driven entirely by a 6.2 per cent increase in flows through major remittance companies, which offset a sharp 17.2 per cent decline in transfers processed by commercial banks and building societies.

The United States solidified its position as the dominant source, accounting for 68.2 per cent of all inflows. The United Kingdom was a distant second at 11.4 per cent, followed by Canada (9.9 per cent) and the Cayman Islands (6.2 per cent).

The BOJ’s macroeconomic indicators underscore the outsized role of remittances. In 2024, they were equivalent to 15.3 per cent of Jamaica’s GDP.

When compared regionally, Jamaica’s growth appears stable but modest. For the first half of 2025, inflows grew 3.5 per cent year-on-year. This contrasts with explosive growth in El Salvador (22.7 per cent) and Guatemala (16.1 per cent), and a sharp 11.1 per cent contraction in neighbouring Mexico, highlighting divergent economic dynamics across Latin America and the Caribbean.

The consolidation of the service provider market, coupled with steady demand, suggests Jamaica’s remittance sector is entering a period of stabilised, efficient growth, securing its role as the nation’s most significant source of foreign exchange for the foreseeable future.