Jamaica Economy Profile 2009

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 the lowest economic growth in Latin America, will face increasing difficulties as the global economy slows. The economy faces serious long-term problems: a sizable merchandise trade deficit, large-scale unemployment and underemployment, and a debt-to-GDP ratio of almost 130%. 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. It hinders government spending on infrastructure and social programs as debt servicing accounts for nearly half of government expenditures. Inflation rose sharply in 2008 as a result of high prices for imported food and oil and should fall in 2009 with the decline in international oil prices. 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)

$20.91 billion (2008 est.)
$21.04 billion (2007 est.)
$20.74 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$14.4 billion (2008 est.)

GDP - real growth rate

-0.6% (2008 est.)
1.4% (2007 est.)
2.7% (2006 est.)

GDP - per capita (PPP)

$7,500 (2008 est.)
$7,600 (2007 est.)
$7,500 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 5.2%
industry: 32.6%
services: 62.2% (2008 est.)

Population below poverty line

14.8% (2003 est.)

Labor force

1.304 million (2008 est.)

Labor force - by occupation

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

Unemployment rate

11% (2008 est.)
9.9% (2007 est.)

Household income or consumption by percentage share

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

Distribution of family income - Gini index

45.5 (2004)
37.9 (2000)

Investment (gross fixed)

26.5% of GDP (2008 est.)

Budget

revenues: $3.794 billion
expenditures: $4.829 billion (2008 est.)

Public debt

109.6% of GDP (2008 est.)
146.1% of GDP (2004 est.)

Inflation rate (consumer prices)

22% (2008 est.)
9.5% (2007 est.)

Commercial bank prime lending rate

NA% (31 December 2008)
17.2% (31 December 2007)

Stock of money

$NA (31 December 2008)
$1.369 billion (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$4.54 billion (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$6.609 billion (31 December 2007)

Industries

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

Industrial production growth rate

-0.5% (2008 est.)

Electricity - production

7.04 billion kWh (2006 est.)

Electricity - production by source

fossil fuel: 96.8%
hydro: 1.8%
nuclear: 0%
other: 1.4% (2001)

Electricity - consumption

6.1 billion kWh (2006 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

0 kWh (2007 est.)

Oil - production

0 bbl/day (2005 est.)

Oil - consumption

73,370 bbl/day (2006 est.)

Oil - imports

71,280 bbl/day (2005)

Oil - exports

1,535 bbl/day (2005)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2007 est.)

Natural gas - consumption

0 cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

-$2.893 billion (2008 est.)
-$1.744 billion (2007 est.)

Agriculture - products

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

Exports

$2.602 billion (2008 est.)
$2.226 billion (2007 est.)

Exports - commodities

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

Exports - partners

US 30.8%, Canada 13.2%, Netherlands 9.8%, UK 9.2%, France 6.7%, Russia 6.6%, Germany 5.5% (2008)

Imports

$7.185 billion (2008 est.)
$5.789 billion (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 34.7%, Trinidad and Tobago 14.4%, Grenada 9.7%, Venezuela 9.5%, Brazil 4.1% (2008)

Reserves of foreign exchange and gold

$1.77 billion (31 December 2008 est.)
$1.879 billion (31 December 2007 est.)

Debt - external

$10.2 billion (31 December 2008 est.)
$9.657 billion (31 December 2007 est.)

Market value of publicly traded shares

$7.513 billion (31 December 2008)
$12.33 billion (31 December 2007)
$12.28 billion (31 December 2006)

Economic aid - recipient

$35.74 million (2005)

Currency (code)

JMD

Currency (code)

Jamaican dollar (JMD)

Exchange rates

Jamaican dollars (JMD) per US dollar - 72.236 (2008 est.), 69.034 (2007), 65.768 (2006), 62.51 (2005), 61.197 (2004)

Fiscal year

1 April - 31 March