The port of Kingston.
JAMAICA recorded a 3.4 per cent contraction in merchandise imports by means of October 2024 whereas weathering an 11.8 per cent export decline, based on new knowledge from the Statistical Institute of Jamaica (Statin), signalling structural financial shifts amid world market turbulence.
Jamaica’s commerce deficit narrowed barely to US$4.63 billion within the first 10 months of 2024, in comparison with us$4.65 billion throughout the identical interval in 2023, providing modest aid amid broader financial challenges. The narrowing was primarily pushed by decreased import spending on uncooked supplies and fuels fairly than sturdy export progress.
The nation spent US$6.14 billion on imports from January to October 2024, down from US$6.35 billion in the identical interval final yr. The decline was led by decreased purchases of uncooked supplies and intermediate items (-11.0 per cent) and fuels (-6.1 per cent), suggesting slower industrial exercise and power conservation efforts. Notably, imports of commercial provides like inorganic chemical compounds fell by 12.6 per cent, whereas building supplies — together with metal merchandise — plummeted by 13.5 per cent.
Nevertheless, shopper spending remained resilient. Imports of family items rose 3.3 per cent, pushed by increased demand for meals and drinks (+6.7 per cent) and non-durables like clothes (+1.1 per cent). Car imports additionally edged up 1.9 per cent, reflecting sustained personal consumption.
However the export sector struggles amid a falloff in re-exports. Whole exports fell to US$1.51 billion, an 11.8 per cent year-over-year decline. The sharp 61.5 per cent drop in re-exports — items imported and resold overseas — to US$158.4 million accounted for many of this stoop. Statin attributed this to decreased transshipment exercise, probably linked to world provide chain changes.
Home exports supplied a silver lining, rising 4 per cent to US$1.35 billion. The mining sector led this progress, with alumina exports surging 26.3 per cent to US$499.6 million, offsetting a 17.5 per cent decline in bauxite shipments. In distinction, manufacturing exports dipped 3.4 per cent, led by an 8 per cent drop in refined petroleum merchandise, whereas agriculture faltered 15 per cent as a result of weaker yam, espresso, and spice gross sales.
Geopolitical Shifts Reshape Commerce Partnerships
The USA retained its place as Jamaica’s largest buying and selling companion in 2024, however commerce patterns revealed important modifications. Imports from Jamaica’s prime 5 suppliers — the US, China, Brazil, Japan, and Colombia — declined by 5.1 per cent year-over-year to US$3.71 billion. This contraction was largely pushed by a 9 per cent drop in imports from the US, which totaled US$2.36 billion. A discount in gasoline imports, down 8 per cent, was a key issue behind this decline.
On the export aspect, shipments to the US fell 12.6 per cent to US$613.9 million, reflecting weaker demand for Jamaican items in its largest market. Nevertheless, Russia emerged as Jamaica’s second-largest export vacation spot, with shipments surging 25.2 per cent to US$147.3 million, fuelled by elevated demand for crude supplies. Iceland and the Netherlands additionally posted double-digit progress in imports from Jamaica, highlighting diversification in export markets.
Regionally, commerce introduced a combined image. Imports from the European Union (EU) rose 4.7 per cent, pushed by elevated purchases of equipment and meals merchandise, however exports to the EU dropped 16.5 per cent, reflecting decreased demand for Jamaican items resembling crude supplies. In distinction, commerce with Caricom international locations weakened on each fronts: imports fell 8.1 per cent to US$345.4 million, whereas exports declined by 16.4 per cent to US$119.4 million as a result of a pointy discount in gasoline exports.
Sectoral Highlight: Mining Growth vs Manufacturing Stoop
Jamaica’s mining sector was a standout performer in 2024, with complete income from mining and quarrying rising 18 per cent year-over-year to US$558.8 million. Alumina exports surged by 26.3 per cent to US$499.6 million, accounting for 37 per cent of home exports and offsetting a 17.5 per cent decline in bauxite shipments.
In distinction, manufacturing struggled, with export earnings falling 3.4 per cent to US$708.1 million. Refined petroleum merchandise led the decline with an 8 per cent drop to US$345.6 million, whereas meals and beverage exports dipped barely by 0.7 per cent. Rum exports had been notably hard-hit, falling 16.9 per cent to $48 million, although different alcoholic drinks posted modest progress of 5.8 per cent.
The agricultural sector confronted persistent challenges, with export earnings plunging 15.2 per cent to US$64.8 million as a result of declines throughout key commodities resembling yams (-9.7 per cent), espresso (-35.4 per cent), and spices (-24.1 per cent). These declines had been attributed to elements resembling climate-related disruptions and elevated competitors in world markets.
