Jamaica/Economy

Economy - overview: Key sectors in this island economy are bauxite (alumina and bauxite account for more than half of exports) and tourism. Since assuming office in 1992, Prime Minister PATTERSON has eliminated most price controls, streamlined tax schedules, and privatized government enterprises. Continued tight monetary and fiscal policies have helped slow inflation - although inflationary pressures are mounting - and stabilize the exchange rate, but have resulted in the slowdown of economic growth (moving from 1.5% in 1992 to 0.5% in 1995). In 1996, GDP showed negative growth (-1.4%) and remained negative through 1999. Serious problems include: high interest rates; increased foreign competition; the weak financial condition of business in general resulting in receiverships or closures and downsizings of companies; the shift in investment portfolios to non-productive, short-term high yield instruments; a pressured, sometimes sliding, exchange rate; a widening merchandise trade deficit; and a growing internal debt for government bailouts to various ailing sectors of the economy, particularly the financial sector. Depressed economic conditions in 1999 led to increased civil unrest, including a mounting crime rate. Jamaica's medium-term prospects will depend upon encouraging investment in the productive sectors, maintaining a competitive exchange rate, stabilizing the labor environment, selling off reacquired firms, and implementing proper fiscal and monetary policies.

GDP: purchasing power parity - $8.8 billion (1999 est.)

GDP - real growth rate: -0.5% (1999 est.)

GDP - per capita: purchasing power parity - $3,350 (1999 est.)

GDP - composition by sector:
agriculture: 7.4%
industry: 42.1%
services: 50.5% (1997 est.)

Population below poverty line: 34.2% (1992 est.)

Household income or consumption by percentage share:
lowest 10%: 2.4%
highest 10%: 31.9% (1991)

Inflation rate (consumer prices): 9.4% (1999 est.)

Labor force: 1.13 million (1998)

Labor force - by occupation: services 60%, agriculture 21%, industry 19% (1998)

Unemployment rate: 15.5% (1998)

Budget:
revenues: $2.27 billion
expenditures: $3.66 billion, including capital expenditures of $1.265 billion (FY98/99 est.)

Industries: tourism, bauxite, textiles, food processing, light manufactures, rum, cement, metal, paper, chemical products

Industrial production growth rate: NA%

Electricity - production: 6.386 billion kWh (1998)

Electricity - production by source:
fossil fuel: 92.7%
hydro: 2.21%
nuclear: 0%
other: 5.09% (1998)

Electricity - consumption: 5.939 billion kWh (1998)

Electricity - exports: 0 kWh (1998)

Electricity - imports: 0 kWh (1998)

Agriculture - products: sugarcane, bananas, coffee, citrus, potatoes, vegetables; poultry, goats, milk

Exports: $1.4 billion (f.o.b., 1999 est.)

Exports - commodities: alumina, bauxite, sugar, bananas, rum

Exports - partners: US 39.5%, EU (excluding UK) 15.6%, UK 12.1%, Canada 11.5% (1998)

Imports: $2.7 billion (f.o.b., 1999 est.)

Imports - commodities: machinery and transport equipment, construction materials, fuel, food, chemicals, fertilizers

Imports - partners: US 50.9%, EU (excluding UK) 9.5%, Caricom countries 10.4%, Latin America 6% (1998)

Debt - external: $3.8 billion (1998 est.)

Economic aid - recipient: $102.7 million (1995)

Currency: 1 Jamaican dollar (J$) = 100 cents

Exchange rates: Jamaican dollars (J$) per US$1 - 45.7 (June 2001), 41.139 (December 1999), 9.044 (1999), 36.550 (1998), 35.404 (1997), 37.120 (1996), 35.142 (1995)

Fiscal year: 1 April - 31 March