September 16, 2026
Latin America and the Caribbean recorded the fastest remittance growth of any region over the past decade, highlighting the increasingly important role migrant transfers play in supporting households and economies. According to the United Nations’ International Fund for Agricultural Development, remittances to the region increased by 132 per cent between 2016 and 2025, reaching US$168.6 billion last year.
Globally, migrants sent US$728.6 billion to families in low- and middle-income countries in 2025, almost double the amount recorded a decade earlier. This increase far outpaced the 28 per cent rise in the number of migrants from these countries over the same period, suggesting that migrants are, on average, sending more money home.
The scale of these flows now exceeds both official development assistance and foreign direct investment to low- and middle-income economies. IFAD estimates that around 220 million migrants and members of diaspora communities support approximately 1.1 billion relatives, with individual transfers typically ranging between US$300 and US$400 and occurring several times each year.
For the Caribbean, remittances remain a particularly important source of household income and foreign exchange. Jamaica received a record US$3.49 billion in remittances in 2025, up 3.8 per cent from the previous year. The flows are equivalent to a significant share of national output and continue to rival or exceed other major sources of external income.
That momentum has carried into 2026. Net remittances to Jamaica rose by 9.3 per cent year over year in June to US$292.8 million, while total inflows for the first half of the year reached US$1.78 billion, representing growth of 4.2 per cent.
However, the benefits have not been evenly distributed across the island. In the seven months following Hurricane Melissa, Kingston and St. Andrew accounted for the majority of the increase in remittance inflows, while several western parishes most affected by the storm recorded much smaller gains. This uneven pattern reflects a broader geographic shift that was already visible before the hurricane.
The United States remains the dominant source of Jamaica’s remittances, accounting for roughly two-thirds of inflows, followed by the United Kingdom, Canada and the Cayman Islands. This concentration provides important support but also creates exposure to changes in migrant employment, immigration policy and labour market conditions abroad.
IFAD noted that, despite tighter immigration policies in the United States and parts of Europe, remittance flows have not yet declined overall. Families continue to prioritise these transfers, particularly during periods of economic stress or disaster recovery.
Remittances are also becoming increasingly digital, helping reduce transaction costs and improve access. Still, IFAD stressed that these private transfers cannot replace government investment, social protection or climate finance. Their growing importance instead underscores the need for cheaper, more transparent remittance services and greater opportunities for recipient households to save, invest and build long-term financial resilience.
Source: (Caribbean National Weekly)
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