Jamaica has natural resources, primarily bauxite, and an ideal climate conducive to agriculture and also tourism. The discovery of bauxite in the 1940s and the subsequent establishment of the bauxite-alumina industry shifted Jamaica's economy from sugar and bananas. By the 1970s, Jamaica had emerged as a world leader in export of these minerals as foreign investment increased.
Weakness in the financial sector, speculation, and lower levels of investment erode confidence in the productive sector. The government continues its efforts to raise new sovereign debt in local and international financial markets in order to meet its U.S. dollar debt obligations, to mop up liquidity to maintain the exchange rate and to help fund the current budget deficit.
Jamaican Government economic policies encourage foreign investment in areas that earn or save foreign exchange, generate employment, and use local raw materials. The government provides a wide range of incentives to investors, including remittance facilities to assist them in repatriating funds to the country of origin; tax holidays which defer taxes for a period of years; and duty-free access for machinery and raw materials imported for approved enterprises.
Free trade zones have stimulated investment in garment assembly, light manufacturing, and data entry by foreign firms. However, over the last 5 years, the garment industry has suffered from reduced export earnings, continued factory closures, and rising unemployment. This may be attributed to intense competition, absence of North American Free Trade Agreement (NAFTA) parity, drug contamination delaying deliveries, and the high cost of operation, including security costs. The Government of Jamaica hopes to encourage economic activity through a combination of privatization, financial sector restructuring, reduced interest rates, and by boosting tourism and related productive activities.
In April 2014, the Governments of Jamaica and China signed the preliminary agreements for the first phase of the Jamaican Logistics Hub (JLH) - the initiative that aims to position Kingston as the fourth node in the global logistics chain, joining Rotterdam, Dubai and Singapore, and serving the Americas. The Project, when completed, is expected to provide many jobs for Jamaicans, Economic Zones for multinational companies and much needed economic growth to alleviate the country's heavy debt-to-GDP ratio. Strict adherence to the IMF's refinancing programme and preparations for the JLH has favourably affected Jamaica's credit rating and outlook from the three biggest rating agencies.
|Economy of Jamaica|
Downtown Kingston - Scotia Bank and the Bank of Jamaica
|Currency||Jamaican dollar (JMD)|
|1 April – 31 March|
|Caribbean Community, WTO|
|GDP||$26.06 billion (2017 est.)|
|0.9% (2015), 1.4% (2016), |
0.5% (2017e), 1.7% (2018f) 
GDP per capita
|$9,200 (2017 est.)|
GDP by sector
|agriculture: 7.5%; |
services: 71.2% (2017 est.)
|3.4% (2017 est.)|
Population below poverty line
|17.6% (2010 est.)|
|1,305,500 (2014 est.)|
|Unemployment||9.6% (2018 est.)|
Average gross salary
|tourism, bauxite/alumina, food processing, light manufactures, rum, cement, metal, paper, chemical products, telecommunications|
|Exports||$1.31 billion (2017 est.)|
|alumina, bauxite, sugar, rum, coffee, yams, beverages, chemicals, and mineral fuels|
Main export partners
| United States 40.8% |
United Kingdom 4.1% (2016 est.)
|Imports||$5.82 billion (2017 est.)|
|food and other consumer goods, industrial supplies, fuel, parts and accessories of capital goods, machinery and transport equipment, construction materials|
Main import partners
| United States 39% |
Trinidad & Tobago 7.2%
Brazil 4.1% (2016 est.)
Gross external debt
|$14.9 billion (31 December 2017 est.)|
|104.1% of GDP (2017 est.)|
|Revenues||$4.207 billion (2017 est.)|
|Expenses||$4.150 billion (2017 est.)|
|Economic aid||recipient: $102.7 million (1995)|
|Standard & Poor's:|
B (T&C Assessment)
|$3.208 billion (2017 est.)|
Before independence, Jamaica's economy was largely focused on agriculture with the vast majority of the labour force engaged in the production of sugar, bananas, and tobacco. According to one study, 18th century Jamaica had the highest wealth inequality in the world, as a very small, slave-owning elite was extremely wealthy while the rest of the population lived on the edge of subsistence.
These products were mainly exported to the United Kingdom, Canada, and the United States of America. Jamaica's trade relationships expanded substantially from 1938 to 1946, with total imports almost doubling from ₤6,485,000 to ₤12,452,000. After 1962, the Jamaican government pushed for industrialization by trying to attract investments from foreign companies. Although the manufacturing and services sectors have grown in the second half of the 20th century, Jamaica's economy still faces some serious problems.
The Jamaican economy suffered its fourth consecutive year of negative growth (0.4%) in 1999. All sectors excepting bauxite/alumina, energy, and tourism shrank in 1998 and 1999. In 2000, Jamaica experienced its first year of positive growth since 1995.
Inflation fell from 25% in 1995 to single digits in 2000, reaching a multidecade low of 4.3% in 2004. Through periodic intervention in the market, the central bank also has prevented any abrupt drop in the exchange rate. The Jamaican dollar has been slipping, despite intervention, resulting in an average exchange rate of J$73.40 per US$1.00 and J136.2 per €1.00 (February 2011). In addition, inflation has been trending upward since 2004 and is projected to once again reach a double digit rate of 12-13% through the year 2008 due to a combination of unfavorable weather damaging crops and increasing agricultural imports and high energy prices.
Over the last 30 years, real per capita GDP increased at an average of just one percent per year, making Jamaica one of the slowest growing developing countries in the world.
To reverse this trajectory, the Government of Jamaica embarked on a comprehensive and ambitious program of reforms for which it has garnered national and international support: a four-year Extended Fund Facility (EFF) by the International Monetary Fund (IMF) providing a support package of US$932 million; World Bank Group and the Inter-American Development Bank (IDB) programs providing US$510 million each to facilitate the GoJ’s economic reform agenda to stabilize the economy, reduce debt and create the conditions for growth and resilience.. In addition, the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) will continue to support private sector development.
The reform program is beginning to bear fruit: Institutional reforms and measures to improve the environment for the private sector have started to restore confidence in the Jamaican economy. Jamaica jumped 27 places to 58 among 189 economies worldwide in the 2015 Doing Business ranking, the country’s credit rating has improved and the Government has successfully raised more than US$2 billion in the international capital in the markets in 2014 and 2015..
Despite some revival, economic growth is still low: the Jamaican Government is forecasting real gross domestic product (GDP) growth of 1.9 per cent for the fiscal year 2015/2016 and the country continues to be confronted by serious social issues that predominantly affect youth, such as high levels of crime and violence and high unemployment. Jamaica, which had seen its poverty rate drop almost 20 percent over two decades, saw it increase by eight percent in a few years.
The unemployment rate in Jamaica is about 13.2% (April 2015, Statistical Institute of Jamaica ), with youth unemployment more than twice the national rate (38%). However, among Jamaica’s assets are its skilled labor force and strong social and governance indicators.
Agricultural production is an important contributor to Jamaica's economy. Agricultural production accounted for 7.4% of GDP in 1997, providing employment for nearly a quarter of the country. Jamaica's agriculture, together with forestry and fishing, accounted for about 6.6% of GDP in 1999. Sugar has been produced in Jamaica for centuries, it is the nation's dominant agricultural export. Sugar is produced in nearly every parish. The production of raw sugar in the year 2000 was estimated at 175,000 tons, a decrease from 290,000 tons in 1978.
Jamaican agriculture has been less prominent in GDP in the 2000s than other industries, hitting an all-time low between 2004 and 2008. This may have been due to a reaction to increased competition as international trade policies were enacted. For example, as NAFTA was enacted in 1993, a significant amount of Caribbean exports to the United States diminished, being out competed by Latin American exports. Another example is the Banana Import Regime's 3rd phase, in which EU nations had first given priority in banana imports to previously colonized nations. Under pressure by the World Trade Organization, the EU policy was altered to provide a non-discriminatory trade agreement. Jamaica's banana industry was easily outpriced by American companies exporting Latin American goods. Jamaica's agriculture industry is now bouncing back, growing from being 6.6% of GDP to 7.2%. The recent growth of the agriculture industry may lead to further improvements in unemployment and exports.
Sugar formed 7.1% of the exports in 1999 and Jamaica made up about 4.8% of the total production of sugar in the Caribbean. Sugar is also used for the production of by-products such as molasses, rum and some wallboard is made from bagasse.
Banana production in 1999 was 130,000 tons. Bananas formed 2.4% of the exports in 1999 and Jamaica formed around 7.5% of the total production of banana in the Caribbean. Jamaica stopped exporting banana in 2008 after suffering from several years of hurricanes that devastated the plantations.
Coffee is mainly grown around the Blue Mountains and in hilly areas. One type in particular, Jamaican Blue Mountain Coffee, is considered among the best in the world because at those heights in the Blue Mountains, the cooler climate causes the berries to take longer to ripen and the beans develop more of the substances which on roasting give coffee its flavor. Coffee formed 1.9% of exports in 1999. The picking season lasts from August to March. The coffee is exported from Kingston.
Cocoa is grown throughout Jamaica and local sales absorb about 1/3 of the output to be made into instant drinks and confectionery. Citrus fruit is mainly grown in the central parts of Jamaica, particularly between the elevations of 1,000-2,500 feet. The picking season lasts from November to April. Two factories in Bog Walk produce fruit juices, canned fruit, essential oils and marmalade. Coconuts are grown on the northern and eastern coasts, which provide enough copra to supply factories to make butterine, margarine, lard, edible oil & laundry soap.
Other export crops are pimento, ginger, tobacco, sisal and other fruit are exported. Rice is grown around swampy areas around the Black River & around Long Bay in Hanover and Westmoreland parishes for local consumption.
As tastes have changed in Jamaica in favor of more meat and packaged food the national food import bill has grown to the point that it threatens the health of the economy. The government has responded by encouraging gardening and farming, a response which has had limited success. For example, the percentage of potatoes grown locally has increased, but imports of french fries have continued at a high level.
Pastures form a good percentage of the land in Jamaica. Many properties specialize in cattle rearing. Livestock holdings were 400,000 head of cattle, 440,000 goats, 180,000 hogs & 30, rs of livestock are increasing, this isn't enough for local requirements for a growing population. Dairying has increased since the erection of a condensed milk factory at Bog Walk in 1940. Even so, the supply of dairy products is not enough for local requirements and there are large imports of powdered milk, butter and cheese.
The fishing industry grew during the 1900s, primarily from the focus on inland fishing. Several thousand fishermen make a living from fishing. The shallow waters and cays off the south coast are richer than the northern waters. Other fishermen live on the Pedro Cays, 80 miles (130 km) to the south of Jamaica.
Jamaica supplies about half of its fish requirements; major imports of frozen and salted fish are imported from the USA & Canada.
By the late 1890, only 185,000 hectares (460,000 acres) of Jamaica's original 1,000,000 hectares (2,500,000 acres) of forest remained. Roundwood production was 881,000 cu m (31.1 million cu ft) in 2000. About 68% of the timber cut in 2000 was used as fuel wood while 32% was used for industrial use. The forests that once covered Jamaica now exist only in mountainous areas. They only supply 20% of the island timber requirements. The remaining forest is protected from further exploitation. Other accessible mountain areas are being reforested, mainly with pines, mahoe and mahogany.
Jamaica was the third-leading producer of bauxite and alumina in 1998, producing 12.6 million tons of bauxite, accounting for 10.4% of world production, and 3.46 million tons of alumina, accounting for 7.4% of world production. 8,540 million tons of bauxite was mined in 2012 and 10,200 million tons of bauxite in 2011.
Mining and quarrying made up 4.1% of the nation's gross domestic product in 1999. Bauxite and alumina formed 55.2% of exports in 1999 and are the second-leading money earner after tourism. Jamaica has reserves of over 2 billion tonnes, which are expected to last 100 years. Bauxite is found in the central parishes of St. Elizabeth, Manchester, Clarendon, St. Catherine, St. Ann, and Trelawny. There are four alumina plants and six mines.
Jamaica has deposits of several million tons of gypsum on the southern slopes of the Blue Mountains. Jamaica produced 330,441 tons of gypsum in the year 2000, some of which was used in the local cement industry and in the manufacturing of building materials.
Other minerals present in Jamaica include marble, limestone, and silica, as well as ores of copper, lead, zinc, manganese and iron. Some of these are worked in small quantities. Petroleum has been sought, but so far none has been found.
The manufacturing sector is an essential contributor to the Jamaican economy. Though manufacturing accounted for 13.9% of GDP in 1999. Jamaican companies contribute many manufactures such as food processing; oil refining; produced chemicals, construction materials, plastic goods, paints, pharmaceuticals, cartons, leather goods and cigars & assembled electronics, textiles and apparel. The garment industry is a major job employer for thousands of hundreds of locals and they formed 12.9% of exports in 1999 earning US$159 million. Chemicals formed 3.3% of the exports in 1999 earning US$40 million.
An oil refinery is located near Kingston converts crude petroleum obtained from Venezuela into gasoline and other products. These are mainly for local use. The construction industry is growing due to new hotels and attractions being built for tourism. Construction and installation formed 10.4% of the GDP in 1999.
Manufactured goods were imported and formed 30.3% of the imports and cost US$877 million in 1999.
Since the launch of the Jamaican Logistics Hub initiative, various economic zones have been proposed throughout the country to assemble goods from other parts of the world for distribution to the Americas.
Tourism is tied with remittances as Jamaica's top source of revenue. The tourism industry earns over 50 percent of the country's total foreign exchange earnings and provides about one-fourth of all jobs in Jamaica. Most tourist activity is centered on the island's northern coast, including the communities of Montego Bay, Ocho Rios, and Port Antonio, as well as in Negril on the island's western tip.
Some destinations include Ocho Rios, Green Grotto Caves, Y.S. Falls and Appleton Estate. Most of the tourist sites are landmarks as well as homes for many Jamaicans. Many of the most frequented tourist sites are located mainly by water such as rivers and beaches where fishermen make a living from seafood. One of the most famous beach towns in Jamaica is Ocho Rios, a located in the parish of Saint Ann on the north coast of Jamaica. It was once a fishing village but now attracts millions of tourists yearly. The site is popular today because of the food and culture that can be found there.
Another famous location in Jamaica that attracts millions yearly is Dunn's River Falls, located in Ocho Rios; this waterfall is approximately 600 feet long and runs off into the sea. Around the location many hotels and restaurants are available and many street vendors sell food around the clock. Another well-known beach town is Negril, the party capital of the country. This beach town has many different factors to add to the night life.
Rising to join Singapore, Dubai and Rotterdam as the fourth node in global logistics, the Jamaican Government has embarked on a restructuring of the economy, deciding to utilise its location at the centre of North-South and East-West shipping lanes to become the choice of global logistics companies to be the Hub of the Western Hemisphere, serving a market of 800 million, and becoming the gateway to Europe and Africa. With the establishment of the Logistics Hub, Jamaica is set to become an important part of the global value chain. Preliminary agreements with the Chinese government were signed in April 2014, marking the first step in the restructuring of the Jamaican economy.
Over the course of the last decade, Jamaica has made immense strides in developing its Information and Communications Technology (ICT) infrastructure. Today, the island is a highly competitive and attractive business destination and a regional leader in Information Technology Export Services (ITES).
As the largest English speaking territory in the Caribbean, Jamaica is the region’s leading contact centre location with over 30 information communications technology/business process outsourcing (ICT/BPO) companies operating in the country employing 11,500 full-time agents.
Jamaican tax rates are extremely favourable in world standards, the brackets are as follows:
|Band||Personal Allowance (J$)||Tax Rate|
|1 (Lower) -Up to||J$1,500,000||0%|
|2 (Middle) - J$1,500,001-J$6,000,000||J$1,500,000||25%|
|3 (Upper) - J$6,000,000+||J$0||30%|
Separate Tax Rates apply for foreign nationals.
Alfred Palmerston Thorne (May 4, 1913 – August 12, 2012) was a development economist, international consultant and educator. He was a featured university lecturer at a number of international campuses including Oxford University. Authoring many articles on the economic development experience of developing countries, his scholarly works were published by Harvard University, Massachusetts Institute of Technology, Oxford Economic Papers, University of Puerto Rico, and University of the West Indies. Among other works, Thorne authored the Size, Structure and Growth of the Economy of Jamaica: A National Economic Accounts Study. The monograph traces the flow of national income throughout the country’s economic sectors. It was very well received and has been collected by and taught at institutions and libraries across the globe. Thorne was also a contributor to Development Without Aid by Leopold Kohr.Alfred P. Thorne received his PhD in Economics and Masters in Business Administration from Columbia University, and received a BComm Honors from the London School of Economics. He became a consultant to the Puerto Rico Planning Board and Department of Commerce, the United Nations, USAID, CIDES and several nations. He witnessed the regime change against Professor Juan Bosch in the Dominican Republic and was an active member of the Instituto de Estudios del Caribe (IEC), the International Association for Research in Income and Wealth. He corresponded with Noam Chomsky and Jan Tinbergen, and Ernst Schumacher asked to meet with him when Schumacher visited Puerto Rico.Bank of Jamaica
The Bank of Jamaica is the central bank of Jamaica located in Kingston. It was established by the Bank of Jamaica Act 1960 and was opened on May 1, 1961.
It is responsible for the monetary policy of Jamaica on the instruction of the Minister of Finance.Coffee production in Jamaica
Coffee production in Jamaica began after 1728, when governor Sir Nicholas Lawes introduced the crop near Castleton, north of Kingston. Jamaican Blue Mountain Coffee is the special variety of coffee that is grown in the Blue Mountains region, which has the most conducive climate and topographical features; this variety is known for its scent and sweet taste. Most of Jamaica's coffee production is grown for export.Index of Jamaica-related articles
The following is an alphabetical list of topics related to the nation of Jamaica.Jamaica
Jamaica ( (listen)) is an island country situated in the Caribbean Sea. Spanning 10,990 square kilometres (4,240 sq mi) in area, it is the third-largest island of the Greater Antilles and the fourth-largest island country in the Caribbean. Jamaica lies about 145 kilometres (90 mi) south of Cuba, and 191 kilometres (119 mi) west of Hispaniola (the island containing the countries of Haiti and the Dominican Republic).
Originally inhabited by the indigenous Arawak and Taíno peoples, the island came under Spanish rule following the arrival of Christopher Columbus in 1494. Many of the indigenous people died of disease, and the Spanish transplanted African slaves to Jamaica as labourers. The island remained a possession of Spain until 1655, when England (later Great Britain) conquered it and renamed it Jamaica. Under British colonial rule Jamaica became a leading sugar exporter, with its plantation economy highly dependent on African slaves. The British fully emancipated all slaves in 1838, and many freedmen chose to have subsistence farms rather than to work on plantations. Beginning in the 1840s, the British utilized Chinese and Indian indentured labour to work on plantations. The island achieved independence from the United Kingdom on 6 August 1962.
With 2.9 million people, Jamaica is the third-most populous Anglophone country in the Americas (after the United States and Canada), and the fourth-most populous country in the Caribbean. Kingston is the country's capital and largest city, with a population of 937,700. Jamaicans mainly have African ancestry, with significant European, Chinese, Indian, Lebanese, and mixed-race minorities. Due to a high rate of emigration for work since the 1960s, Jamaica has a large diaspora, particularly in Canada, the United Kingdom, and the United States.
Jamaica is an upper-middle income country with an average of 4.3 million tourists a year.Jamaica is a Commonwealth realm, with Elizabeth II as its queen. Her appointed representative in the country is the Governor-General of Jamaica, an office held by Sir Patrick Allen since 2009. Andrew Holness has served as Prime Minister of Jamaica since March 2016. Jamaica is a parliamentary constitutional monarchy with legislative power vested in the bicameral Parliament of Jamaica, consisting of an appointed Senate and a directly elected House of Representatives.Jamaica Stock Exchange
The Jamaica Stock Exchange is the principal stock exchange of Jamaica, also known as JSE. Incorporated in 1968, JSE opened in 1969 in Kingston, Jamaica. The current chairman is Ian McNaughton and the Deputy Chairman is Gary Peart. The Managing Director is Marlene Street Forrest.Jamaica and the International Monetary Fund
Jamaica joined the International Monetary Fund (IMF) in February of 1963 under the leadership of The Rt. Hon. Sir Alexander Bustamante, one year after the country’s independence. From 1963 to 1966, Rt. Hon. Sir Donald Sangster served as Jamaica’s governor to the IMF and World Bank, and represented Jamaica during delegations held at the IMF and World Bank's Washington D.C. headquarters. In 1963, the IMF made its first loan to Jamaica ever, in the amount of 10 million SDR’s. In 1967, Sir Donald Sangster was elected as Jamaica's second Prime Minister, simultaneously serving as Minister of Finance and Minister of Defense.Moreover, Jamaica played a pivotal role in hosting the 1976 IMF Interim Committee in Jamaica, during the IMF's changing role within the Bretton Woods system that, in 1944, had previously been established after World War II. In a letter to President Ford, William E. Simon highlighted the major revisions of the Bretton Woods system that took effect as a result of the ratification of the Jamaica Accords. The Jamaica Accords focus was to abolishment of the Gold Standard that the Bretton Woods System had previously established. In order to create a more stable international monetary system, the Jamaica Accords served to create a more versatile foreign exchange rate that focused on a floating foreign exchange rate. In addition to the abolishment of the Bretton Woods system, a secondary meeting was held in Jamaica that helped the Development Committee to refocus on developing countries financial problems within the International Monetary System. In conclusion, this meeting established the implementation of expanded access to IMF resources through a Trust Fund in order to create more support for developing countries.Jamaican Free Zones
The Jamaican Free Zones are a government free trade zone initiative in Jamaica. Designed to encourage foreign investment and international trade, businesses operating within these zones have no tax on their profits, and are exempted from customs duties on imports and exports (capital goods, raw materials, construction materials, and office equipment) and import licensing requirements. They must export 85 percent of their products outside of the Caribbean Community (CARICOM).Jamaican dollar
The Jamaican dollar (sign: $; code: JMD) has been the currency of Jamaica since 1969. It is often abbreviated to J$, the J serving to distinguish it from other dollar-denominated currencies. It is divided into 100 cents.Jamaican pound
The Jamaican pound was the official currency of Jamaica between 1840 and 1969. It circulated as a mixture of British currency and local issues and was always equal to the British pound. The Jamaican pound was also used by the Cayman Islands and Turks and Caicos Islands.Life and Debt
Life and Debt is a 2001 American documentary film directed by Stephanie Black. It examines the economic and social situation in Jamaica, and specifically how the International Monetary Fund and the World Bank's structural adjustment policies have impacted the island.List of companies of Jamaica
Jamaica is an island country situated in the Caribbean Sea, consisting of the third-largest island of the Greater Antilles. Jamaica is a mixed economy with both state enterprises and private sector businesses. Major sectors of the Jamaican economy include agriculture, mining, manufacturing, tourism, and financial and insurance services. Tourism and mining are the leading earners of foreign exchange. Half the Jamaican economy relies on services, with half of its income coming from services such as tourism. An estimated 1.3 million foreign tourists visit Jamaica every year.List of regions of Jamaica by Human Development Index
This is a list of regions of Jamaica by Human Development Index as of 2018 with data for the year 2017.Outline of Jamaica
The following outline is provided as an overview of and topical guide to Jamaica:
Jamaica – sovereign island nation located on the Island of Jamaica of the Greater Antilles archipelago in the Caribbean Sea. It is 234 kilometres (145 mi) long and 80 kilometres (50 mi) at its widest. It lies about 145 kilometres (90 mi) south of Cuba and 190 kilometres (120 mi) west of the Hispaniola. Its indigenous Arawakan-speaking Taíno inhabitants named the island Xaymaca, meaning the "Land of Wood and Water", or the "Land of Springs". Formerly a Spanish possession known as Santiago, it later became the British West Indies Crown colony of Jamaica. It is the third most populous anglophone country in the Americas, after the United States and Canada.Petroleum Corporation of Jamaica
For the Dutch shortwave radio station see PCJJ
Petroleum Corporation of Jamaica (PCJ) is a petroleum company owned by the government of Jamaica. The PCJ has the exclusive right to explore for oil in Jamaica.Revenue stamps of Jamaica
Revenue stamps of Jamaica were first issued in 1855. There were various types of fiscal stamps for different taxes.
Economy of the Americas