Remittance inflows across the Caribbean grew 5.9 per cent in the first quarter of 2026, compared with the year-earlier period, but the pace of growth has decelerated, according to a recent report from the Inter-American Development Bank (IDB).
“In 2026, remittances continue to grow, but at a more moderate pace as the exceptional conditions behind last year’s increase begin to ease,” the report stated.
The IDB attributed the cooling to the exhaustion of two forces that had powered the post-pandemic surge: savings-financed transfers and additional working hours among migrants.
“The outlook for the rest of the year will depend largely on migrant labour market participation in the United States and exchange rate dynamics across the region,” the report stated.
During the quarter, Haiti led the region at 12 per cent. The Dominican Republic, which receives the largest flows, grew 4.2 per cent; Jamaica, 4.1 per cent; and Trinidad and Tobago, 2.1 per cent. The trend remains positive but with less momentum, carried largely by Haiti’s performance and by stable flows to other Caribbean countries. The United States remained Jamaica’s dominant source corridor, accounting for roughly two-thirds of all inflows.
Remittances across Latin America and the Caribbean hit a record US$173.7 billion in 2025, up 7.3 per cent year-on-year. The Caribbean region outpaced the wider region with growth of 10.8 per cent for the full year, a rate the first-quarter 2026 figures suggest is unlikely to be repeated. Among individual corridors, El Salvador grew 19.2 per cent, Guatemala, 11.5 per cent, and Mexico ,1.4 per cent.
For Jamaica, remittances are equivalent to roughly 15 per cent of gross domestic product and represent the island’s largest source of foreign exchange outside of tourism. The flows have served as a cushion during the post-Hurricane Melissa recovery, helping families finance rebuilding while the formal economy contracted 5.9 per cent in the first quarter.
The IDB said remittances would likely set another record in 2026 in absolute terms, but cautioned that the room for further acceleration now appears limited.
business@gleanerjm.com
