Jamaica’s remittance inflows fell sharply in October, declining by 8.3 per cent compared with the same month last year, in one of the steepest monthly contractions since the onset of the COVID-19 pandemic in 2020.
The drop, amounting to US$21.4 million, coincided with the passage of Hurricane Melissa, which battered the island late in the month and disrupted financial channels relied on by millions of Jamaican households.
According to the Bank of Jamaica’s (BOJ) monthly Remittance Bulletin, net remittances totaled US$238.0 million in October, down from US$259.4 million in October 2024. The central bank attributed the decline primarily to lower inflows, which fell by US$19.3 million, alongside a modest rise in outflows.
Remittances—typically gifts sent by Jamaicans overseas to relatives and friends—are a critical source of household income and foreign exchange for the country.
“The decline in total remittance inflows was attributed to lower flows,” the BOJ stated.
Hurricane Melissa played a significant role, with the storm causing widespread infrastructure damage and employment disruptions estimated at up to US$8.9 billion, or roughly 40 per cent of Jamaica’s gross domestic product. The hurricane struck on October 28, forcing temporary airport closures, delaying postal services, and interrupting traditional remittance delivery channels.
The decline in October was broad-based. Transfers through remittance companies fell by 6.6 per cent, while “other remittances,” including those routed through commercial banks, declined by 9.2 per cent. At the same time, remittance outflows increased by 10.5 per cent.
Despite the October setback, authorities expect an uptick in remittance-related support in the aftermath of the storm, as overseas Jamaicans send financial assistance, gifts, and loans to aid rebuilding efforts. However, the impact of that support on November’s figures remains uncertain.
On a fiscal year-to-date basis, the picture is more stable. Net remittances from April through October totaled US$1.887 billion, representing a 1.2 per cent increase compared with the same period in 2024.
Still, Jamaica’s modest growth lags behind double-digit increases recorded in countries such as Guatemala and El Salvador, highlighting the island’s continued vulnerability to external shocks.
The United States remained Jamaica’s largest source of remittances, accounting for 68.4 per cent of inflows, slightly higher than last year. The United Kingdom, Canada, and the Cayman Islands followed, together contributing more than a quarter of total transfers.
