Economy - overviewThe Jamaican economy is heavily dependent on services, which now account for nearly 65% of GDP. The country continues to derive most of its foreign exchange from tourism, remittances, and bauxite/alumina. Remittances account for nearly 15% of GDP and exports of bauxite and alumina make up about 10%. The bauxite/alumina sector was most affected by the global downturn while the tourism industry was resilient, experiencing an increase of 4% in tourist arrivals. Tourism revenues account for roughly 10% of GDP, and both arrivals and revenues grew in 2010, up 4% and 6% respectively. Jamaica's economy faces many challenges to growth: high crime and corruption, large-scale unemployment and underemployment, and a debt-to-GDP ratio of more than 120%. Jamaica's onerous public debt burden is the result of government bailouts to ailing sectors of the economy, most notably to the financial sector. In early 2010, the Jamaican government created the Jamaica Debt Exchange in order to retire high-priced domestic bonds and significantly reduce annual debt servicing. Despite the improvement, debt servicing costs still hinder the government's ability to spend on infrastructure and social programs, particularly as job losses rise in a shrinking economy. Jamaica was hard hit by the effects of the global economic crisis, experiencing economic contractions from 2008-10 and growth remains low. The SIMPSON-MILLER administration faces the difficult prospect of having to achieve fiscal discipline in order to maintain debt payments, while simultaneously attacking a serious crime problem that is hampering economic growth. High unemployment exacerbates the crime problem, including gang violence that is fueled by the drug trade. As of late 2012, the SIMPSON-MILLER government was working to negotiate a new IMF Stand-by agreement to gain access to additional funds. GDP (purchasing power parity)$25.18 billion (2012 est.) GDP (official exchange rate)$15.26 billion (2012 est.) GDP - real growth rate0.9% (2012 est.) GDP - per capita (PPP)$9,100 (2012 est.) GDP - composition by sectoragriculture: 6.5% Population below poverty line16.5% (2009 est.) Labor force1.325 million (2012 est.) Labor force - by occupationagriculture: 17% Unemployment rate14.2% (2012 est.) Unemployment, youth ages 15-24total: 27.1% Household income or consumption by percentage sharelowest 10%: 2.1% Distribution of family income - Gini index45.5 (2004) Investment (gross fixed)19.5% of GDP (2012 est.) Budgetrevenues: $3.83 billion Taxes and other revenues25.1% of GDP (2012 est.) Budget surplus (+) or deficit (-)-6.1% of GDP (2012 est.) Public debt127.3% of GDP (2012 est.) Inflation rate (consumer prices)6.8% (2012 est.) Central bank discount rate2% (31 December 2010 est.) Commercial bank prime lending rate13.1% (31 December 2012 est.) Stock of money$1.253 billion (31 December 2008) Stock of narrow money$2.028 billion (31 December 2012 est.) Stock of quasi money$4.244 billion (31 December 2008) Stock of broad money$7.309 billion (31 December 2011 est.) Stock of domestic credit$7.229 billion (31 December 2012 est.) Market value of publicly traded shares$7.223 billion (31 December 2011) Agriculture - productssugarcane, bananas, coffee, citrus, yams, ackees, vegetables; poultry, goats, milk; shellfish Industriestourism, bauxite/alumina, agro processing, light manufactures, rum, cement, metal, paper, chemical products, telecommunications Industrial production growth rate-2% (2010 est.) Current Account Balance-$1.523 billion (2012 est.) Exports$1.718 billion (2012 est.) Exports - commoditiesalumina, bauxite, sugar, rum, coffee, yams, beverages, chemicals, wearing apparel, mineral fuels Exports - partnersUS 36.8%, Canada 18.1%, Netherlands 7.3%, UK 5.4%, Norway 4.3% (2011) Imports$6.019 billion (2012 est.) Imports - commoditiesfood and other consumer goods, industrial supplies, fuel, parts and accessories of capital goods, machinery and transport equipment, construction materials Imports - partnersUS 32.8%, Venezuela 15%, Trinidad and Tobago 14.2%, China 6.3%, Mexico 4.1% (2011) Reserves of foreign exchange and gold$1.9 billion (31 December 2012 est.) Debt - external$14.6 billion (31 December 2012 est.) Exchange ratesJamaican dollars (JMD) per US dollar - Fiscal year1 April - 31 March |
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Source: CIA World Factbook | |