Remittance inflows to Jamaica surged 14.2 per cent in November, marking one of the sharpest monthly increases since the COVID 19 pandemic as the island’s diaspora stepped up financial support following Hurricane Melissa.
Net remittances reached US$281.2 million for the month, up US$35.1 million from November 2024, according to the Bank of Jamaica’s latest remittance bulletin. The double digit expansion reversed October’s steep 8.3 per cent decline, when the storm disrupted traditional money transfer channels and temporarily shuttered airports and postal services.
“The increase in total remittance inflows was attributed to higher flows via the remittance companies channel,” the central bank said, noting that inflows climbed US$38.1 million, or 14.3 per cent, while outflows rose a more modest US$3.0 million.
The November rebound suggests diaspora communities mobilised quickly to send emergency funds to family members affected by the hurricane, which caused an estimated US$8.9 billion in damages—equivalent to roughly 40 per cent of Jamaica’s gross domestic product. Rebuilding costs have stretched household budgets across the island, making remittances even more critical than usual.
For the calendar year through November, Jamaica received US$3.15 billion in remittance inflows, up 3.0 per cent from the same period in 2024. That growth rate, while positive, contrasts sharply with the 19.2 per cent and 19 per cent increases recorded by El Salvador and Guatemala, respectively, while Mexico experienced a 5.2 per cent decline.
The United States remained the dominant source of inflows, accounting for two thirds, the United Kingdom contributed 12.5 per cent, Canada 9.8 per cent, and the Cayman Islands 6.0 per cent.
Remittances, which are monetary gifts, have long served as a financial lifeline for Jamaican households, with funds sent from relatives and friends abroad helping to cover essential expenses, education costs, and emergencies. The payments accounted for 15.3 per cent of Jamaica’s GDP in 2024, down from 15.8 per cent in 2023 but still representing a substantial share of the economy.
The sector’s infrastructure has also evolved. The number of active remittance service provider locations declined to 492 in 2024 from 514 in 2023, reflecting consolidation as 49 locations voluntarily closed while only 27 new sites were licensed. Total licences issued fell to 842 from 858, though nine primary agents remain in operation.
The November surge may prove temporary if it primarily reflected one time hurricane relief rather than sustained income growth among diaspora workers. October’s sharp decline demonstrated how quickly remittance flows can contract when disruptions occur, particularly in a small island economy heavily dependent on a few geographic corridors.
