Jamaica Economy Profile 2008

Economy - overview

The Jamaican economy is heavily dependent on services, which now account for more than 60% of GDP. The country continues to derive most of its foreign exchange from tourism, remittances, and bauxite/alumina. Remittances account for nearly 20% of GDP and are equivalent to tourism revenues. Jamaica's economy, already saddled with a record of sluggish growth, will suffer an economic setback from damages caused by Hurricane Dean in August 2007. The economy faces serious long-term problems: high but declining interest rates, increased foreign competition, exchange rate instability, a sizable merchandise trade deficit, large-scale unemployment and underemployment, and a debt-to-GDP ratio of 135%. Jamaica's onerous debt burden - the fourth highest per capita - is the result of government bailouts to ailing sectors of the economy, most notably the financial sector in the mid-to-late 1990s. Inflation also has declined, standing at about 7% at the end of 2007. High unemployment exacerbates the serious crime problem, including gang violence that is fueled by the drug trade. The GOLDING administration faces the difficult prospect of having to achieve fiscal discipline in order to maintain debt payments while simultaneously attacking a serious and growing crime problem that is hampering economic growth.

GDP (purchasing power parity)

$13.47 billion (2007 est.)

GDP (official exchange rate)

$8.905 billion (2007 est.)

GDP - real growth rate

1.5% (2007 est.)

GDP - per capita (PPP)

$4,800 (2007 est.)

GDP - composition by sector

agriculture: 5%
industry: 34%
services: 61% (2007 est.)

Population below poverty line

14.8% (2003 est.)

Household income or consumption by percentage share

lowest 10%: 2.1%
highest 10%: 35.8% (2004)

Inflation rate (consumer prices)

7.1% (2007 est.)

Investment (gross fixed)

34.1% of GDP (2007 est.)

Labor force

1.255 million (2007 est.)

Labor force - by occupation

agriculture: 17%
industry: 19%
services: 64% (2006)

Unemployment rate

10.2% (2007 est.)

Distribution of family income - Gini index

45.5 (2004)

Budget

revenues: $3.441 billion
expenditures: $3.905 billion (2007 est.)

Public debt

134.3% of GDP (2007 est.)

Industries

tourism, bauxite/alumina, agro processing, light manufactures, rum, cement, metal, paper, chemical products, telecommunications

Industrial production growth rate

2% (2007 est.)

Electricity - production

6.985 billion kWh (2005)

Electricity - consumption

6.131 billion kWh (2005)

Electricity - exports

0 kWh (2005)

Electricity - imports

0 kWh (2005)

Oil - production

0 bbl/day (2005 est.)

Oil - consumption

72,000 bbl/day (2005 est.)

Oil - imports

71,420 bbl/day (2004)

Oil - exports

1,531 bbl/day (2004)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2005 est.)

Natural gas - consumption

0 cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

-$1.573 billion (2007 est.)

Agriculture - products

sugarcane, bananas, coffee, citrus, yams, ackees, vegetables; poultry, goats, milk; crustaceans, mollusks

Exports

$2.229 billion f.o.b. (2007 est.)

Exports - commodities

alumina, bauxite, sugar, bananas, rum, coffee, yams, beverages, chemicals, wearing apparel, mineral fuels

Exports - partners

US 30.2%, Canada 15.6%, China 15.2%, UK 10.3%, Netherlands 7%, Norway 4.6% (2006)

Imports

$5.709 billion f.o.b. (2007 est.)

Imports - commodities

food and other consumer goods, industrial supplies, fuel, parts and accessories of capital goods, machinery and transport equipment, construction materials

Imports - partners

US 39.3%, Trinidad and Tobago 13.6%, Venezuela 9.5% (2006)

Reserves of foreign exchange and gold

$1.95 billion (31 December 2007 est.)

Debt - external

$7.138 billion (31 December 2007 est.)

Market value of publicly traded shares

$12.28 billion (2006)

Economic aid - recipient

$35.74 million (2005)

Currency (code)

Jamaican dollar (JMD)

Exchange rates

Jamaican dollars per US dollar - 69.034 (2007), 65.768 (2006), 62.51 (2005), 61.197 (2004), 57.741 (2003)

Fiscal year

1 April - 31 March