ECONOMICS

 

Main Crops: sugarcane, bananas, coffee, citrus, potatoes, vegetables; poultry, goats, milk

Natural Resources: bauxite, gypsum, limestone.

Major Industries: Tourism, bauxite, textiles, food processing, light manufactures

The Jamaican economy is heavily dependent on services, which accounts for more than 70% of GDP. The country derives most of its foreign exchange from tourism, remittances, and bauxite/alumina. Earnings from remittances and tourism each account for 14% and 20% of GDP, while bauxite/alumina exports have declined to less than 5% of GDP.

Jamaica's economy has grown on average less than 1% a year for the last three decades and many impediments remain to growth: a bloated public sector which crowds out spending on important projects; high crime and corruption; red-tape; and a high debt-to-GDP ratio. Jamaica, however, has made steady progress in reducing its debt-to-GDP ratio from a high of almost 150% in 2012 to less than 110% in 2017, in close collaboration with the International Monetary Fund (IMF). The current IMF Stand-By Agreement requires Jamaica to produce an annual primary surplus of 7%, in an attempt to reduce its debt burden below 60% by 2025.

Economic growth reached 1.6% in 2016, but declined to 0.9% in 2017 after intense rainfall, demonstrating the vulnerability of the economy to weather-related events. The HOLNESS administration therefore faces the difficult prospect of maintaining fiscal discipline to reduce the debt load while simultaneously implementing growth inducing policies and attacking a serious crime problem. High unemployment exacerbates the crime problem, including gang violence fueled by advanced fee fraud (lottery scamming) and the drug trade.

 

 

 

	1990	2000	2010	2020
GNI, Atlas method (current US$) (billions)	4.29	8.6	12.34	13.82
GNI per capita, Atlas method (current US$)	1,770	3,240	4,390	4,670
GNI, PPP (current international $) (billions)	10.4	16.22	21.37	26.47
GNI per capita, PPP (current international $)	4,300	6,110	7,600	8,940
GDP (current US$) (billions)	4.59	9.01	13.22	13.81
GDP growth (annual %)	4.2	0.9	-1.5	-10
Inflation, GDP deflator (annual %)	25.1	10.6	9.8	3.6
Agriculture, forestry, and fishing, value added (% of GDP)	8	6	5	9
Industry (including construction), value added (% of GDP)	28	23	18	20
Exports of goods and services (% of GDP)	48	39	31	38
Imports of goods and services (% of GDP)	52	51	50	52
Gross capital formation (% of GDP)	26	23	20	24
Revenue, excluding grants (% of GDP)	29.2	26.1	27.4	30.8
Net lending (+) / net borrowing (-) (% of GDP)	2.4	-0.9	-6.3	1.2
States and markets
Time required to start a business (days)	..	31	8	3
Domestic credit provided by financial sector (% of GDP)	..	..	..	..
Tax revenue (% of GDP)	23.5	22.5	24.3	27.5
Military expenditure (% of GDP)	0.8	0.5	0.9	1.7
Mobile cellular subscriptions (per 100 people)	0	13.8	113.2	97
Individuals using the Internet (% of population)	0	3.1	27.7	68.2
High-technology exports (% of manufactured exports)	..	..	3	3
Statistical Capacity Score (Overall Average) (scale 0 - 100)	..	..	74	54
Global links
Merchandise trade (% of GDP)	67	51	50	43
Net barter terms of trade index (2000 = 100)	..	100	95	83
External debt stocks, total (DOD, current US$) (millions)	4,791	4,828	14,193	18,035
Total debt service (% of exports of goods, services and primary income)	28.6	18.8	28	51.2
Net migration (thousands)	-110	-92	-57	-57
Personal remittances, received (current US$) (millions)	229	878	2,026	3,067
Foreign direct investment, net inflows (BoP, current US$) (millions)	138	420	186	265
Net official development assistance received (current US$) (millions)	271.6	14.1	141.1	127.1