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| Capital city: |
Kingston |
| Surface area: |
11,000 sq km |
| Population: |
2.7 million |
| Official language(s): |
English |
| Head of State: |
H.M. Queen Elizabeth II, represented by the Governor-General H.E. The Most Hon Prof Kenneth Octavius Hall |
| Head of Government: |
Prime Minister The Honourable Bruce Golding |
| Australian exports to Jamaica: |
A$30 million |
| Australian imports from Jamaica: |
A$2 million |
| Jamaica's principal export destinations: |
USA, Canada, UK |
| Jamaica's principal import sources: |
USA, Trinidad and Tobago, Venezuela |
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
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Economic climate
Key economic indicators and statistics for 2008:
- GDP – US$13.5 billion
- GPD per capita – US$4,990
- Real GDP growth – 0.7 per cent
- Inflation – 18.3 per cent
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)
The Jamaican economy, suffering the effects of Hurricane Dean and rising international commodities prices and oil prices in particular, grew by 1.4 per cent in 2007, well below the three to four per cent target of the year.
While construction, distribution and financial services recorded relatively strong growth, it was largely nullified by declines in agriculture and mining, the sectors more affected by the hurricane. Additional damage to roads, bridges, and the agriculture exports sector was caused by Tropical Storm Gustav in August 2008. This, coupled with the ongoing effects of the global economic crisis, has caused a further deterioration in economic performance.
The Jamaican economy is heavily dependent on services, which now account for more than 60 per cent of GDP. The country continues to derive most of its foreign exchange from tourism, remittances, and bauxite/alumina. Remittances account for nearly 20 per cent of GDP and are equivalent to tourism revenues. Jamaica's economy, already saddled with the lowest economic growth in Latin America, will face increasing difficulties as the global economy slows. The economy faces serious long-term problems: a sizable merchandise trade deficit, large-scale unemployment and underemployment, and a debt-to-GDP ratio of almost 130 per cent.
Jamaica's onerous debt burden – the fourth highest per capita – is the result of government bailouts to ailing sectors of the economy, most notably the financial sector in the mid-to-late 1990s, and hinders government spending on infrastructure and social programs as debt servicing accounts for nearly half of government expenditures. Inflation rose sharply in 2008 as a result of high prices for imported food and oil and should fall in 2009 with the decline in international oil prices. High unemployment exacerbates the serious crime problem, including gang violence that is fuelled by the drug trade. The Golding administration faces the difficult prospect of having to achieve fiscal discipline in order to maintain debt payments while simultaneously attacking a serious and growing crime problem that is hampering economic growth.
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Political climate
Jamaica's political system is stable. However, the country's serious economic problems have exacerbated social problems and have become the subject of political debate. High unemployment--averaging 12.5 per cent – rampant underemployment, growing debt, and high interest rates are the most serious economic problems. Violent crime is a serious problem, particularly in Kingston.
The two major political parties have historical links with the two largest trade unions--the Jamaica Labour Party (JLP) with the Bustamante Industrial Trade Union (BITU), and the People's National Party (PNP) with the National Workers Union (NWU). The center-right National Democratic Movement (NDM) was established in 1995, and the populist United Peoples Party (UPP) in 2001; neither has links with any particular trade union, and both are marginal movements.
Since the 1993 elections, the Jamaican Government, political parties, and Electoral Advisory Committee have worked to enact electoral reform. In the 2002 general elections, grassroots Jamaican efforts from groups like Citizens Action for Free and Fair Elections, supplemented by international observers and organisations. |
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Trade relations and statistics
Major Australian exports to Jamaica (2007-08):
- Meat (excluding bovine) – A$13 million
- Road motor vehicles – A$4 million
- Milk and cream – A$2 million
- Trailers and semi-trailers– A$2 million
Major Australian imports from Jamaica (2007-08):
- Alcoholic beverages - A$1 million
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)
The best prospects in Jamaica are:
- Building products
- Telecommunications equipment
- Safety and security equipment
- Drugs/pharmaceuticals
- Automotive parts and service equipment
- Tourism-related activities
- Non-traditional agriculture and agribusiness
- Information and communications technology
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