@Jamaica:Economy
Economy-overview: Key sectors in this island economy are bauxite (alumina and bauxite account for more than half of exports) and tourism. Since assuming office in 1992, Prime Minister PATTERSON has eliminated most price controls, streamlined tax schedules, and privatized government enterprises. Continued tight monetary and fiscal policies have helped slow inflation and stabilize the exchange rate, but have resulted in the slow-down of economic growth (moving from 1.5% in 1992 to 0.5% in 1995. In 1996, GDP was in negative growth (-1.4%) and remained so in 1997. Serious problems include: high interest rates; increased foreign competition; the weak financial condition of business in general resulting in receiverships or closures and downsizings of companies; the shift in investment portfolios to non-productive, short-term high yield instruments; a pressured, sometimes sliding, exchange rate; a widening merchandise trade deficit; and a growing internal debt for government bailouts to various ailing sectors of the economy. Jamaica's medium-term prospects will depend upon encouraging investment in the productive sectors, maintaining a competitive exchange rate, stabilizing the labor environment, and implementing proper fiscal and monetary policies.
GDP: purchasing power parity-$9.5 billion (1996 est.)
GDP-real growth rate: -1.4% (1996 est.)
GDP-per capita: purchasing power parity-$3,660 (1996 est.)
GDP-composition by sector: agriculture: 8% industry: 37% services: 55% (1996 est.)
Inflation rate-consumer price index: 17% (1996 est.)
Labor force: total: 1.14 million (1996) by occupation: services 41%, agriculture 22.5%, industry 19%, unemployed 17.5% (1989)
Unemployment rate: 16% (1996 est.)
Budget: revenues: $3 billion expenditures: $3 billion, including capital expenditures of $1.163 billion (FY97/98 est.)