North & Central America and Caribbean

Jamaica
Last reviewed: 05 August 2009

Country information

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ECONOMY

Basic Economic Facts

GDP: (Purchasing Power Parity): US$20.67 billion (2007)
GDP (Official Exchange Rate):US$11.21 billion
Annual Growth: 2.6 % (2006, Government of Jamaica,)
Inflation: 16.8% (2007)
Unemployment rate: 9.4% (2007)
Major Industries: tourism, bauxite and alumina, textiles, food processing, light manufacturing, sugar, rum, cement, metal, paper, chemical products, bananas.
Major Trading Partners: US, EU, UK, Canada, the CARICOM countries, Latin America, Japan

Key sectors in the economy are tourism and bauxite. Alumina and bauxite account for more than half of exports. Agriculture also plays an important role. Remittances are also significant.

High interest rates and high levels of debt, increased foreign competition and a growing trade deficit as well as increasing food and oil prices present serious challenges.

Other challenges include a need for the sugar industry to diversify. Jamaica’s 'brain drain' where talented Jamaicans leave the country in search of a better life elsewhere continues. High levels of violent crime and corruption continue to threaten Jamaica’s economic development.

Political constraints deter budget austerity and fears have been raised about Jamaica’s ability to meet its long-term debt obligations despite a record of it never having defaulted. In August 2007 Jamaica was hit by Hurricane Dean, which led to four deaths and damage to infrastructure, housing and the farming community. Agricultural production was also disrupted, although not as severely as in 2004 when Hurricane Ivan struck the island.