Jamaica Economy 2007

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. Jamaica's economy, already saddled with a record of sluggish growth, was hit hard by Hurricane Ivan in late 2004, but has made a gradual recovery. 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 high debt burden - the result of government bailouts to ailing sectors of the economy, most notably the financial sector in the mid-to-late 1990s. Following a strategy begun in 2004, Jamaica has reduced its public debt to 133.3% of GDP. Inflation also had declined to 5.8% at the end of 2006. High unemployment exacerbates the serious crime problem, including gang violence fueled by the drug trade. The government 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):
$12.84 billion (2006 est.)

GDP (official exchange rate):
$9.23 billion (2006 est.)

GDP - real growth rate:
2.5% (2006 est.)

GDP - per capita (PPP):
$4,700 (2006 est.)

GDP - composition by sector:
agriculture: 5.4%
industry: 33.8%
services: 60.8% (2006 est.)

Labor force:
1.249 million (2006 est.)

Labor force - by occupation:
agriculture: 18.1%
industry: 17.3%
services: 64.6% (2004)

Unemployment rate:
11.3% (2006 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)

Distribution of family income - Gini index:
45.5 (2004)

Inflation rate (consumer prices):
8.6% (2006 est.)

Investment (gross fixed):
32.9% of GDP (2006 est.)

Budget:
revenues: $3.214 billion
expenditures: $3.772 billion (2006 est.)

Public debt:
137.1% of GDP (2006 est.)

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

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

Industrial production growth rate:
-2% (2000 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 (2004 est.)

Oil - consumption:
72,080 bbl/day (2004 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Oil - proved reserves:
0 bbl (1 January 2006)

Natural gas - production:
0 cu m (2005 est.)

Natural gas - consumption:
0 cu m (2005 est.)

Current account balance:
$-1.096 billion (2006 est.)

Exports:
$2.117 billion f.o.b. (2006 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:
$5.062 billion f.o.b. (2006 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)

Economic aid - recipient:
$35.74 million (2005)

Reserves of foreign exchange and gold:
$2.318 billion (2006 est.)

Debt - external:
$6.926 billion (2006 est.)

Market value of publicly traded shares:
$12.28 billion (2006)

Currency (code):
Jamaican dollar (JMD)

Exchange rates:
Jamaican dollars per US dollar - 65.768 (2006), 62.51 (2005), 61.197 (2004), 57.741 (2003), 48.416 (2002)