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Jamaica
operates as a mixed, free market economy with state
enterprises as well as 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 foreign exchange earners.
Supported by
multilateral financial institutions, Jamaica has, since the
early 1980's, 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 program of economic liberalization
and stabilization by removing exchange controls, floating
the exchange rate, cutting tariffs, stabilizing the Jamaican
currency, 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 liberalization 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 privatization programs.
Also See:
Tourism
- Picture of Jamaica,
Bauxite
Export - Picture of Jamaica
The
macroeconomic stabilization program introduced in 1991,
which focused on tight fiscal and monetary policies, has
contributed to a controlled reduction in the rate of
inflation. The annual inflation rate has decreased from a
high of 80.2% in 1991 to 7.9% in 1998. inflation for
FY1998/99 was 6.2% compared to 7.2% in the corresponding
period in FY1997/98. The Government remains committed to
lowering inflation, with a long-term objective of bringing
it in line with that of its major trading partners.
After a
period of steady growth from 1985 to 1995, real GDP
decreased by 1.8% and 2.4% in 1996 and 1997, respectively.
The decrease in GDP in 1996 and 1997 was largely due to
significant problems in the financial sector and, in 1997, a
severe island-wide drought (the worst in 70 years) that
drastically reduced agricultural production. In 1997,
nominal GDP was approximately J$220,556.2 million
(US$6,198.9 million based on the average annual exchange
rate of the period).
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 15.3% in third quarter of 1998 compared to
the corresponding period in 1997, signaling the first
positive growth rate in the sector since January 1997.
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. Tourism, which is the largest
foreign exchange earner, showed improvement as well. Growth
in tourist arrivals accelerated in the third quarter of 1998
and tourism earnings, increased 8.5% from January to
December 31, 1998 compared to the corresponding period in
1997.
Also See:
Jamaican
Free Zones.
Sources:
www.wikipedia.org |
