Remittances continue to grow with December 2020 up 39.5%Wednesday, March 31, 2021
Jamaica continues to experience healthy growth in net remittances with the latest numbers for December 2020 showing inflows of US$282.4 million, representing an increase of 39.5 per cent or US$79.9 million relative to December 2019.
The Bank of Jamaica (BOJ) reports that this increase emanated from an increase in gross remittance inflows of 35.3 per cent or US$78.7 million aided by a decrease of 6.2 per cent or US$1.2 million in outflows.
In its latest remittances bulletin for December, the BOJ attributes the increase in gross remittance inflows to an improvement of 42.7 per cent via remittance companies as well as an increase in other remittances of 0.7 per cent for the month of December.
For the period April to December 2020, net remittance inflows totalled US$2.17 billion, an increase of 31.9 per cent or US$526.1 million more relative to the corresponding period in 2019. This improvement emanated from a jump of 26.4 per cent or US$488.9 million in total remittance inflows, and was supported by a decline of 18.5 per cent or US$37.2 million in total outflows.
The improvement in inflows results from an increase of 30.8 per cent in remittance companies flows while other remittances recorded an increase of 4.8 per cent. Regarding the source of remittance inflows, the largest source market to Jamaica for December 2020 remains the USA.
Remittances from the USA accounted for 67.1 per cent of total flows, up from 63.2 per cent recorded for December 2019. Other source countries, which contributed a notable share of remittances for the month, were the United Kingdom at 12.7 per cent, followed by Canada and the Cayman Islands at 10.1 per cent and 6.0 per cent, respectively.
For the calendar year 2020 Jamaica's growth rate in remittance inflows of 20.8 per cent was higher than that of Mexico, which registered a growth rate of 12.7 per cent. Guatemala and El Salvador also registered growth for the period with increases of roughly 7.5 per cent and 4.8 per cent, respectively.
Overall, the January to December 2020 period had remittance inflows totalling US$2.9 billion.
— Durrant Pate
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