Jamaica Economy - 2005

Economy - overview:
The Jamaican economy is heavily dependent on services, which now account for 60% of GDP. The country continues to derive most of its foreign exchange from tourism, remittances, and bauxite/alumina. The global economic slowdown, particularly after the terrorist attacks in the US on 11 September 2001, stunted economic growth; the economy rebounded moderately in 2003-04, with brisk tourist seasons. But the economy faces serious long-term problems: high interest rates; increased foreign competition; a pressured, sometimes sliding, exchange rate; a sizable merchandise trade deficit; large-scale unemployment; and a growing internal debt, the result of government bailouts to ailing sectors of the economy. The ratio of debt to GDP is close to 150%. Inflation, previously a bright spot, is expected to remain in the double digits. Uncertain economic conditions have led to increased civil unrest, including gang violence fueled by the drug trade. In 2004, the government faced the difficult prospect of having to achieve fiscal discipline in order to maintain debt payments while simultaneously attacking a serious and growing crime problem which is hampering economic growth. Attempts at deficit control were derailed by Hurricane Ivan in September 2004, which required substantial government spending to repair the damage. Despite the hurricane, tourism looks set to enjoy solid growth for the foreseeable future.

GDP:
purchasing power parity - $11.13 billion (2004 est.)

GDP - real growth rate:
1.9% (2004 est.)

GDP - per capita:
purchasing power parity - $4,100 (2004 est.)

GDP - composition by sector:
agriculture: 6.1%
industry: 32.7%
services: 61.3% (2004 est.)

Labor force:
1.14 million (2004 est.)

Labor force - by occupation:
agriculture 20.1%, industry 16.6%, services 63.4% (2003)

Unemployment rate:
15% (2004 est.)

Population below poverty line:
19.7% (2002 est.)

Household income or consumption by percentage share:
lowest 10%: 2.7%
highest 10%: 30.3% (2000)

Distribution of family income - Gini index:
37.9 (2000)

Inflation rate (consumer prices):
12.4% (2004 est.)

Investment (gross fixed):
32% of GDP (2004 est.)

Budget:
revenues: $2.793 billion
expenditures: $3.157 billion, including capital expenditures of $236 million (2004 est.)

Public debt:
146.1% of GDP (2004 est.)

Agriculture - products:
sugarcane, bananas, coffee, citrus, yams, vegetables, poultry, goats, milk, crustaceans, and mollusks

Industries:
tourism, bauxite/alumina, textiles, agro processing, wearing apparel, light manufactures, rum, cement, metal, paper, chemical products, telecommunications

Industrial production growth rate:
-2% (2000 est.)

Electricity - production:
6.289 billion kWh (2002)

Electricity - consumption:
5.849 billion kWh (2002)

Electricity - exports:
0 kWh (2002)

Electricity - imports:
0 kWh (2002)

Oil - production:
0 bbl/day (2001 est.)

Oil - consumption:
66,000 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Current account balance:
$-830.7 million (2004 est.)

Exports:
$1.679 billion f.o.b. (2004 est.)

Exports - commodities:
alumina, bauxite, sugar, bananas, rum, coffee, yams, beverages, chemicals, wearing apparel, mineral fuels

Exports - partners:
US 17.2%, Canada 14.3%, France 12.6%, China 11.4%, UK 8.6%, Netherlands 7%, Norway 5.8%, Germany 5.6% (2004)

Imports:
$3.624 billion f.o.b. (2004 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 38.3%, Trinidad and Tobago 10.3%, Venezuela 5.6%, France 5.5%, Japan 4.6% (2004)

Reserves of foreign exchange and gold:
$1.4 billion (2004 est.)

Debt - external:
$5.964 billion (2004 est.)

Economic aid - recipient:
$16 million (2003)

Currency (code):
Jamaican dollar (JMD)

Exchange rates:
Jamaican dollars per US dollar - 61.197 (2004), 57.741 (2003), 48.416 (2002), 45.996 (2001), 42.986 (2000)