Economy of Jamaica

Economy of Jamaica
Currency	Jamaican dollar (JMD, J$)
Trade organisations	CARICOM , WTO
Country group	Developing country; Upper-middle income country;
Statistics
Population	2,726,667 (2018)
GDP	$20.586 billion (nominal, 2024); $33.775 billion (PPP, 2024);
GDP rank	118th (nominal, 2019); 133rd (PPP, 2019);
GDP growth	4.6% (2021) 5.2% (2022); 2.6% (2023) 1.3% (2024);
GDP per capita	$7,487 (nominal, 2024 est.); $12,283 (PPP, 2024 est.);
GDP per capita rank	97th (nominal, 2018); 109th (PPP, 2018);
GDP by sector	agriculture: 7.5%; industry: 21.3%; services: 71.2%; (2017 est.);
Inflation (CPI)	3.733% (2018)
Population below poverty line	17.1% (2016 est.); 29.7% on less than $5.50/day (2004);
Gini coefficient	35 medium (2016)
Human Development Index	0.709 high (2021) (110th); 0.591 medium IHDI (2021);
Labour force	1,514,936 (2019); 58.2% employment rate (2018);
Unemployment	3.5% (October 2024)
Average gross salary	J$272,604 (£1,493/$2,498)
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.)
Export goods	alumina, bauxite, chemicals, coffee, mineral fuels, waste and scrap metals, sugar, yams
Main export partners	United States 39.1%; United Kingdom 36.6%; Netherlands 12.3%; Canada 8.4%; (2017);
Imports	$5.151 billion (2017 est.)
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	ChinaPR” 41.8%; United States 35.6%; Colombia 6.8%; Trinidad and Tobago 4.7%; (2017);
FDI stock	$15.03 billion (2016); Abroad: $604 million (2016);
Current account	−$679 million (2017 est.)
Gross external debt	$14.94 billion (31 December 2017 est.)
Public finances
Government debt	101% of GDP (2017 est.)
Foreign reserves	$3.781 billion (31 December 2017 est.)
Budget balance	+0.5% (of GDP) (2017 est.)
Revenues	4.382 billion (2017 est.)
Expenses	4.314 billion (2017 est.)
Economic aid	recipient: $102.7 million (1995)
Credit rating	Standard & Poor's:; B− (Domestic); B− (Foreign); B (T&C Assessment); Outlook: Stable; Moody's:; B3; Outlook: Stable; Fitch:; B−; Outlook: Positive;
	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. 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. 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 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, 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 privatisation, financial sector restructuring, reduced interest rates, and by boosting tourism and related productive activities. Since the first quarter of 2006, the economy of Jamaica has undergone a period of staunch growth. With inflation for the 2006 calendar year down to 6.0% and unemployment down to 8.9%, the nominal GDP grew by an unprecedented 2.9%. An investment programme in island transportation and utility infrastructure and gains in the tourism, mining, and service sectors all contributed this figure. All projections for 2007 show an even higher potential for economic growth with all estimates over 3.0% and hampered only by urban crime and public policies. Jamaica was ranked 79th in the Global Innovation Index in 2024.

In 2006, Jamaica became part of the CARICOM Single Market and Economy (CSME) as one of the pioneering members. The global economic downturn had a significant impact on the Jamaican economy for the years 2007 to 2009, resulting in negative economic growth. The government implemented a new Debt Management Initiative, the Jamaica Debt Exchange (JDX) on 14 January 2010. The initiative would see holders of Government of Jamaica (GOJ) bonds returning the high interest earning instruments for bonds with lower yields and longer maturities. The offer was taken up by over 95% of local financial institutions and was deemed a success by the government.