Business Update: Net Remittances Up By 3%


Source: Bank of Jamaica Click to enlarge
Source: Bank of Jamaica
Click to enlarge

It is no secret that Remittances tops the list of foreign exchange earners for the country. It is the way in which many families and individuals who have migrated over the years in search of the proverbial “greener pastures” have significantly supported their loved ones who are in need in Jamaica.

The most recent published Remittance Report from the Bank of Jamaica (BOJ) was for the month of July 2013. Net Remittances for July 2013 were US$149.7 million. The increase in remittance for the period when compared to the same period in 2012, was as a result of  1.6% increase in total remittance inflows which was offset by 7.6% contraction in total remittance outflows. July’s net remittances also represented a 3% growth above June 2013’s US$145.8 million.

Remittance Inflows

For July 2013 remittance inflows were US$170.5 million. This represented a 3% increase in inflows above the US$166 million that was received in June 2013 and US$1.6 million more than inflows for the same period in 2012.

US Government Shutdown

It is without doubt that the recent 16 day shutdown of the United States government which resulted in approximately 800,00 federals being furloughed indefinitely and 1.3 million reporting to work with no known pay dates will have an impact on remittance inflows for the month of October and possible affecting the two remaining months in the year as well.

Historically remittance inflows for the month of December are usually the highest for the calendar year. diGJamaica wonders what inflows will be for the remaining months specifically flows for December 2013.