page_title: Jamaica
section_title: Economy
hierarchical_section_title: Jamaica / Economy
caption_attribution_description: English: This is a photo I took myself in 2006 of James Bond Beach in Oracabessa, Jamaica.
context_page_description: Jamaica is an island country situated in the Caribbean Sea. Spanning 10,990 square kilometres in area, it is the third-largest island of the Greater Antilles and the Caribbean. Jamaica lies about 145 kilometres south of Cuba, and 191 kilometres west of Hispaniola; the British Overseas Territory of the Cayman Islands lies some 215 kilometres to the north-west.
  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 were either killed or died of diseases to which they had no immunity, and the Spanish thus forcibly transplanted large numbers of African slaves to Jamaica as labourers. The island remained a possession of Spain until 1655, when England conquered it, renaming it Jamaica. Under British colonial rule Jamaica became a leading sugar exporter, with a plantation economy dependent on the African slaves and later their descendants. The British fully emancipated all slaves in 1838, and many freedmen chose to have subsistence farms rather than to work on plantations.
context_section_description: Jamaica is a mixed economy with both state enterprises and private sector businesses. Major sectors of the Jamaican economy include agriculture, mining, manufacturing, tourism, petroleum refining, 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 4.3 million foreign tourists visit Jamaica every year. According to the World Bank, Jamaica is an upper-middle income country that, like its Caribbean neighbours, is vulnerable to the effects of climate change, flooding, and hurricanes. In 2018, Jamaica represented the CARICOM Caribbean Community at the G20 and the G7 annual meetings. In 2019 Jamaica reported its lowest unemployment rate in 50 years.
  Supported by multilateral financial institutions, Jamaica has, since the early 1980s, sought to implement structural reforms aimed at fostering private sector activity and increasing the role of market forces in resource allocation Since 1991, the government has followed a programme of economic liberalisation and stabilisation by removing exchange controls, floating the exchange rate, cutting tariffs, stabilising the Jamaican dollar, reducing inflation and removing restrictions on foreign investment. Emphasis has been placed on maintaining strict fiscal discipline, greater openness to trade and financial flows, market liberalisation and reduction in the size of government. During this period, a large share of the economy was returned to private sector ownership through divestment and privatisation programmes. The free-trade zones at Kingston, Montego Bay and Spanish Town allow duty-free importation, tax-free profits, and free repatriation of export earnings.
  Jamaica's economy grew strongly after the years of independence, but then stagnated in the 1980s, due to the heavy falls in price of bauxite and fluctuations in the price of agriculture. The financial sector was troubled in 1994, with many banks and insurance companies suffering heavy losses and liquidity problems. According to the Commonwealth Secretariat, "The government set up the Financial Sector Adjustment Company (Finsac) in January 1997 to assist these banks and companies, providing funds in return for equity, and acquired substantial holdings in banks and insurance companies and related companies,.. but it only exasperated the problem, and brought the country into large external debt. From 2001, once it had restored these banks and companies to financial health, Finsac divested them." The Government of Jamaica remains committed to lowering inflation, with a long-term objective of bringing it in line with that of its major trading partners.
  In 1996 and 1997 there was a decrease in GDP largely due to significant problems in the financial sector and, in 1997, a severe island-wide drought (the worst in 70 years) and hurricane that drastically reduced agricultural production. In 1997 and 1998, nominal GDP was approximately a high of about 8 percent of GDP and then lowered to 4½ percent of GDP in 1999 and 2000. The economy in 1997 was marked by low levels of import growth, high levels of private capital inflows and relative stability in the foreign exchange market.
  Recent economic performance shows the Jamaican economy is recovering. Agricultural production, an important engine of growth increased to 5.5% in 2001 compared to the corresponding period in 2000, signalling the first positive growth rate in the sector since January 1997. In 2018, Jamaica reported a 7.9% increase in corn, 6.1% increase in plantains, 10.4% increase in bananas, 2.2% increase in pineapples, 13.3% increase in dasheen, 24.9% increase in coconuts, and a 10.6% increase in whole milk production. Bauxite and alumina production increased 5.5% from January to December 1998, compared to the corresponding period in 1997. January's bauxite production recorded a 7.1% increase relative to January 1998 and continued expansion of alumina production through 2009 is planned by Alcoa. Jamaica is the fift
caption: James Bond Beach in Oracabessa
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