Economy of Jamaica

Economy of Jamaica

Currency	Jamaican dollar (JMD, J$)
Fiscal year	1 April – 31 March
Trade organisations	CARICOM, WTO
Country group	Developing/Emerging[1] Upper-middle income economy[2]
Statistics
Population	2,726,667 (2018)[3]
GDP	$15.461 billion (nominal, 2018)[4] $27.092 billion (PPP, 2018)[4]
GDP rank	118th (nominal, 2019) 133rd (PPP, 2019)
GDP growth	1.9% (2018) 0.7% (2019e) −6.2% (2020f) 2.7% (2021f)[5]
GDP per capita	$5,582 (nominal, 2019 est.)[4] $9,473 (PPP, 2018 est.)[4]
GDP per capita rank	97th (nominal, 2018) 109th (PPP, 2018)
GDP by sector	agriculture: 7.5% industry: 21.3% services: 71.2% (2017 est.)[6]
Inflation (CPI)	3.733% (2018)[4]
Population below poverty line	17.1% (2016 est.)[7] 29.7% on less than $5.50/day (2004)[8]
Gini coefficient	35 medium (2016)[7]
Human Development Index	0.709 high (2021)[9] (110th) 0.591 medium IHDI (2021)[10]
Labour force	1,514,936 (2019)[11] 58.2% employment rate (2018)[12]
Unemployment	7.8% (July 2019)[13]
Average gross salary	J$272,604 (£1,493/$2,498)[14]
Average net salary	J$255,021 (£1,396/$2,337)
Main industries	tourism, bauxite/alumina, food processing, light manufactures, rum, cement, metal, paper, chemical products, telecommunications
External
Exports	$1.296 billion (2017 est.)[7]
Export goods	alumina, bauxite, chemicals, coffee, mineral fuels, waste and scrap metals, sugar, yams
Main export partners	United States 39.1%  Netherlands 12.3%  Canada 8.4% (2017)[7]
Imports	$5.151 billion (2017 est.)[7]
Import goods	food and other consumer goods, industrial supplies, fuel, parts and accessories of capital goods, machinery and transport equipment, construction materials
Main import partners	United States 40.6%  Colombia 6.8%  Japan 5.8%  China 5.8%  Trinidad and Tobago 4.7% (2017)[7]
FDI stock	$15.03 billion (2016)[7] Abroad: $604 million (2016)[7]
Current account	−$679 million (2017 est.)[7]
Gross external debt	$14.94 billion (31 December 2017 est.)[7]
Public finances
Government debt	101% of GDP (2017 est.)[7]
Budget balance	+0.5% (of GDP) (2017 est.)[7]
Revenues	4.382 billion (2017 est.)[7]
Expenses	4.314 billion (2017 est.)[7]
Economic aid	recipient: $102.7 million (1995)
Credit rating	Standard & Poor's:[15][16] B− (Domestic) B− (Foreign) B (T&C Assessment) Outlook: Stable Moody's:[16] B3 Outlook: Stable Fitch:[16] B− Outlook: Positive
Foreign reserves	$3.781 billion (31 December 2017 est.)[7]
All values, unless otherwise stated, are in US dollars.

The economy of Jamaica is heavily reliant on services, accounting for 71% of the country's GDP.^[17] Jamaica has natural resources and a climate conducive to agriculture and tourism. The discovery of bauxite in the 1940s and the subsequent establishment of the bauxite-alumina industry shifted Jamaica's economy from sugar, and bananas.^[18]

Weakness in the financial sector, speculation, and lower levels of investment erode confidence in the productive sector. The government continues its efforts to raise new sovereign debt in local and international financial markets in order to meet its U.S. dollar debt obligations, to mop up liquidity to maintain the exchange rate and to help fund the current budget deficit.

The Jamaican government's economic policies encourage foreign investment in areas that earn or save foreign exchange, generate employment, and use local raw materials. The government also provides a wide range of incentives to investors.

Free trade zones have stimulated investment in garment assembly, light manufacturing, and data entry by foreign firms. However, over the last 5 years^[when?], the garment industry has suffered from reduced export earnings, continued factory closures, and rising unemployment. The Government of Jamaica hopes to encourage economic activity through a combination of privatization, financial sector restructuring, reduced interest rates, and by boosting tourism and related productive activities.