Jamaica’s remittance industry is showing signs of resilience even as the structure of the market undergoes a quiet but dramatic reshaping. The latest data from the Bank of Jamaica reveal that net inflows in June 2025 rose 2.8 per cent year-on-year, reaching US$267.5 million. This modest increase extends a steady upward trajectory, reinforcing the sector’s role as one of the economy’s most dependable pillars.
For the April–June quarter, inflows climbed to US$830.6 million, representing a 3.8 per cent rise compared with the same period in 2024. These gains, while modest compared to regional peers, highlight the sector’s consistency: remittances continue to dwarf foreign direct investment, cover close to half of the nation’s import bill, and contribute the equivalent of over 15 per cent of GDP.
Yet beneath the surface, the market itself is consolidating. Active remittance locations have slipped below 500, down from over 514 just a year earlier. Licenses surrendered or revoked jumped sharply, while fresh entrants dwindled. The exits point to the retreat of smaller operators unable to compete on scale or efficiency, while larger players have deepened their dominance.
A closer look at June’s figures underscores this concentration. Major remittance firms registered a 6.2 per cent expansion in inflows, more than offsetting a 17.2 per cent contraction in transfers handled by commercial banks and building societies. Analysts suggest this signals a shift in consumer trust toward specialized providers over traditional financial institutions.
The geography of the inflows remains largely unchanged. The United States continues to account for more than two-thirds of funds sent home, followed by the United Kingdom, Canada, and the Cayman Islands. These corridors form the lifeblood of household support across Jamaica, cushioning consumption and stabilizing foreign exchange reserves.
In a regional context, Jamaica’s growth is steady but restrained. Central American countries such as El Salvador and Guatemala are posting double-digit surges in remittance receipts, while Mexico, the region’s giant, is grappling with double-digit declines. Jamaica’s moderate expansion suggests a maturing market rather than explosive growth, with stability taking precedence over volatility.
With fewer players but higher volumes, Jamaica’s remittance sector is evolving into a leaner, more efficient system. The consolidation, paired with steady demand, positions remittances not just as a vital flow of foreign currency but as a stabilizing force in an economy navigating regional and global uncertainties.
