The aftermath of Hurricane Beryl wreaked havoc not only on physical infrastructure but also on the flow of remittances into Jamaica. The closure of remittance stores in severely affected parishes contributed to a significant decrease in inflows in July, as per the latest data from the central bank.
Here are some key points to consider:
- Remittance inflows dropped by almost 5.0% in July, falling from US$303 million to US$289 million compared to the same period last year.
- Hurricane Beryl affected locations in three parishes โ St Elizabeth, Manchester, and Clarendon, causing delays in restoring full service in those areas.
- GraceKennedy, the operator of Western Union in Jamaica, experienced a slowdown in transactions and a lack of the usual post-hurricane surge in remittances.
- Despite the setback in July, remittances through GraceKennedyโs network have shown a positive trend in August, surpassing the previous year by over 6.0%.
It is important to note that remittances are a crucial source of income for many Jamaican households, second only to tourism in terms of economic impact. These funds, sent primarily from the United States, United Kingdom, Canada, and the Cayman Islands, provide vital support to families in Jamaica.
While Jamaica saw a decline in remittance inflows over the year-to-date period, other countries in the region experienced growth. Guatemalaโs remittances increased by 7.0%, Mexico by 4.0%, and El Salvador saw a slight decrease of 0.4%.
Despite the challenges posed by natural disasters and economic fluctuations, Jamaica has seen resilient remittance flows over the years. In 2021, the country recorded a record-breaking US$3.5 billion in remittances, driven by changes in the market due to the COVID-19 pandemic. This influx of funds has continued to support Jamaican families in need, even as the global landscape evolves.
In conclusion, while external factors may impact remittance flows in the short term, the long-term trend remains positive for Jamaica. Continued support from overseas relatives and efficient remittance channels will ensure that these vital funds continue to flow into the country, providing essential assistance to those who rely on them.
