This paper reviews economic developments in Jamaica since 1985. In the early 1990s, Jamaica carried out a number of important structural reforms that had a favorable effect on the public finances, resulting in overall public sector surpluses averaging 3 percent of GDP in FY1993–95. These steps included the elimination of general price subsidies and the decontrol of prices, the elimination of the import monopoly of the Jamaica Commodity Trading Corporation, and the institution of cost pass-through mechanisms for public enterprises.

Abstract

This paper reviews economic developments in Jamaica since 1985. In the early 1990s, Jamaica carried out a number of important structural reforms that had a favorable effect on the public finances, resulting in overall public sector surpluses averaging 3 percent of GDP in FY1993–95. These steps included the elimination of general price subsidies and the decontrol of prices, the elimination of the import monopoly of the Jamaica Commodity Trading Corporation, and the institution of cost pass-through mechanisms for public enterprises.

Table 1.

Jamaica: Gross Domestic Product by Final Expenditure

article image
Source Statistical Institute of Jamaica

Includes public enterprises

Table 2.

Jamaica: Savings and Investment

article image
Source: Statistical Institute of Jamaica.

Includes public enterprises.

Comprises the general government and the Bank of Jamaica.

Includes private transfers.

Includes official transfers.

Table 3.

Jamaica: Gross Fixed Capital Formation

article image
Source: Statistical Institute of Jamaica.
Table 4.

Jamaica: Gross Domestic Product by Sector at Constant 1986 Prices

article image
Source Substical Institute of Jamaica
Table 5.

Jamaica: Output of Selected Commodities

article image
article image
Sources Statistical Institute of Jamaica; and Ministry of Agriculture.
Table 6.

Jamaica: Selected Information on the Bauxite/Alumina Sector

article image
Source: Statistical Institute of Jamaica.

Millions of metric tons, unless otherwise indicated

Table 7.

Jamaica: Employed Labor Force by Industry 1/

article image
Source Statistical Institute of Jamaica.

Population, labor force, and employment data are averages of April and October sample labor force surveys except the 1991 data which refer to the January and October surveys,

Defined as the ratio of the total labor force to the population 14 years old and over.

Defined as the proportion of the labor force that is not employed.

Job-seekers as a proportion of the labor force.

Table 8.

Jamaica: Average Weekly Earnings in Large Establishments 1/

article image
Source: Statistical Institute of Jamaica.

Excluding agriculture, Government, and employees in Free Zones.

Table 9.

Jamaica: Consumer Price Index

article image
Table 9.

Jamaica: Consumer Price Index

article image
Source Statistical Institute of Jamaica.

Fiscal years begin on April 1

Table 10.

Jamaica: Public Sector Balance and Financing

article image
Sources Bank of Jamaica, and Ministry of Finance and Planning.

Data in 1995 differ from Fund staff estimates by amount of interest rescheduling

Table 11.

Jamaica: Consolidated General Government Operations 1/

article image
Source Table 12.

Includes the Central Government, the National Insurance Fund, the National Housing Trust, and the Human Education and Resources Training Trust

Table 12.

Jamaica: Operations of the General Government 1/

article image
article image
article image
Sources: Bank of Jamaica; and Ministry of Finance and Planning.

Includes the Central Government, the National Insurance Fund, the National Housing Trust, and the High Education and Resource Training Unit

Operations of the local governments are not shown separately because they depend almost entirely on transfers from the Central Government

Adjusted to include levy receipts earmarked to repay a 1982 advance.