Jamaica has some way some how, had the option to turn around its fortunes, taking everything into account. For the last decade, the Caribbean country has been struggling in terms of slow economic growth in that region. Starting around 2012, the Jamaican stock market and the country’s dollar have been on a bull run from that point forward.
But with the guide of the International Monetary Fund (IMF), the country lowered its debt-to-GDP ratio from 137.9% in 2014 to 91.5% in 2021. According to Trading Economics, the Jamaican economy rose 13.9% from 2014 to 2019, exceeding its yearly average GDP growth of 0.33%.
Unfortunately for Jamaica, Covid appeared in 2020, and the nation drooped back to the drawing board, with its GDP shrinking by 10% in that year (ie. 2020). Jamaica’s economy was less affected than some other Caribbean islands, but the introduction of endless travel limitations remained a drag on development, which bounced back to 4.3% in 2021, as per the World Bank.
Tourism In Japan Is Transforming Into A New ‘Leaf’!
Meanwhile, tourism officials of Jamaica predicts that 2022 will be a good year of recuperation, according to the Tourism minister. They hope to close 2022 having welcomed a sum of 3.2 million guests bringing more than $3 billion to the economy. If everything goes fruitful as expected, it will be almost half more the tourism revenue than the previous year.
Jamaica expects a ‘boom’ in economic growth, but some experts cautions of macro risks such as inflation and supply chain disruptions. The economic experts say Jamaica, like much of the rest of the world, is experiencing a period of high inflation. The country still heavily relies on imported inputs, such as fertilizer and oil, which have risen dramatically in recent months.
With a populace of 2,983,494, it’s the biggest and most populous English-speaking island in the Caribbean, and right now partakes in an untouched low joblessness rate of 6.2%. The country’s numerous business benefits include 14 seaports and three international air terminals.
On the flip side, Jamaica currently has the highest murder rate in the Americas, according to insightcrime.org. It also faces significant weather-related risks. According to USAID’s report, natural disasters have also severely impacted Jamaica’s economic growth.
But the good news is that, Jamaica’s political system is currently regarded as stable and democratic, even though general elections have been postponed twice since 2020, due to Covid.
Jamaica has preferential trade agreements in force with the US, the EU and Canada, as well as having good business relations with China. It is a popular base for pharmaceutical companies—AstraZeneca and GlaxoSmithKline both have operations there. It has also attracted Scotiabank from Canada, Archer Daniels Midland from the US, and China’s Huawei.
