structural:summarization
Economy

Jamaica is a mixed economy with both state enterprises and private sector businesses. Major sectors of the Jamaican economy include agriculture, mining, manufacturing, tourism, petroleum refining, financial and insurance services. Tourism and mining are the leading earners of foreign exchange. Half the Jamaican economy relies on services, with half of its income coming from services such as tourism. An estimated 4.3 million foreign tourists visit Jamaica every year. According to the World Bank, Jamaica is an upper-middle income country that, like its Caribbean neighbours, is vulnerable to the effects of climate change, flooding, and hurricanes. In 2018, Jamaica represented the CARICOM Caribbean Community at the G20 and the G7 annual meetings. In 2019 Jamaica reported its lowest unemployment rate in 50 years.

Supported by multilateral financial institutions, Jamaica has, since the early 1980s, sought to implement structural reforms aimed at fostering private sector activity and increasing the role of market forces in resource allocation Since 1991, the government has followed a programme of economic liberalisation and stabilisation by removing exchange controls, floating the exchange rate, cutting tariffs, stabilising the Jamaican dollar, reducing inflation and removing restrictions on foreign investment. Emphasis has been placed on maintaining strict fiscal discipline, greater openness to trade and financial flows, market liberalisation and reduction in the size of government. During this period, a large share of the economy was returned to private sector ownership through divestment and privatisation programmes. The free-trade zones at Kingston, Montego Bay and Spanish Town allow duty-free importation, tax-free profits, and free repatriation of export earnings.

Jamaica's economy grew strongly after the years of independence, but then stagnated in the 1980s, due to the heavy falls in price of bauxite and fluctuations in the price of agriculture. The financial sector was troubled in 1994, with many banks and insurance companies suffering heavy losses and liquidity problems. According to the Commonwealth Secretariat, "The government set up the Financial Sector Adjustment Company (Finsac) in January 1997 to assist these banks and companies, providing funds in return for equity, and acquired substantial holdings in banks and insurance companies and related companies..." but it only exasperated the problem, and brought the country into large external debt. From 2001, once it had restored these banks and companies to financial health, Finsac divested them." The Government of Jamaica remains committed to lowering inflation, with a long-term objective of bringing it in line with that of its major trading partners.

In 1996 and 1997 there was a decrease in GDP largely due to significant problems in the financial sector and, in 1997, a severe island-wide drought (the worst in 70 years) and hurricane that drastically reduced agricultural production. In 1997 and 1998, nominal GDP was approximately a high of about 8 percent of GDP and then lowered to 4½ percent of GDP in 1999 and 2000. The economy in 1997 was marked by low levels of import growth, high levels of private capital inflows and relative stability in the foreign exchange market.

Recent economic performance shows the Jamaican economy is recovering. Agricultural production, an important engine of growth increased to 5.5% in 2001 compared to the corresponding period in 2000, signalling the first positive growth rate in the sector since January 1997. In 2018, Jamaica reported a 7.9% increase in corn, 6.1% increase in plantains, 10.4% increase in bananas, 2.2% increase in pineapples, 13.3% increase in dasheen, 24.9% increase in coconuts, and a 10.6% increase in whole milk production. Bauxite and alumina production increased 5.5% from January to December 1998, compared to the corresponding period in 1997. January's bauxite production recorded a 7.1% increase relative to January 1998 and continued expansion of alumina production through 2009 is planned by Alcoa. Jamaica is the fifth-largest exporter of bauxite in the world, after Australia, China, Brazil and Guinea. The country also exports limestone, of which it holds large deposits. The government is currently implementing plans to increase its extraction.

A Canadian company, Carube Copper Corp, has found and confirmed, "...the existence of at least seven significant Cu/Au porphyry systems (in St. Catherine)." They have estimated that, "The porphyry distribution found at Bellas Gate is similar to that found in the Northparkes mining district of New South Wales, Australia (which was) sold to China in 2013 for US$820 million." Carube noted that Jamaica's geology, "... is similar to that of Chile, Argentina and the Dominican Republic – all productive mining jurisdictions." Mining on the sites began in 2017.

Tourism, which is the largest foreign exchange earner, showed improvement as well. In 1999 the total visitor arrivals was 2 million, an increase of 100,000 from the previous year. Since 2017, Jamaica's tourism has risen exponentially, rising to 4.3 million average tourists per year. Jamaica's largest tourist markets are from North America, South America, and Europe. In 2017, Jamaica recorded a 91.3% increase in stopover visitors from Southern and Western Europe (and a 41% increase in stopover arrivals from January to September 2017 over the same period from the previous year) with Germany, Portugal and Spain registering the highest percentage gains. In 2018, Jamaica won several World Travel Awards in Portugal winning the "Chairman's Award for Global Tourism Innovation", "Best Tourist Board in the Caribbean" "Best Honeymoon Destination", "Best Culinary Destination", "World's Leading Beach Destination" and "World's Leading Cruise Destination". Two months later, the Travvy Tourism Awards held in New York City, awarded Jamaica's Tourism Minister Edmund Bartlett, with the inaugural Chairman's Award for, "Global Tourism Innovation for the Development of the Global Tourism Resilience and Crisis Management Centre (GTRCM)". Bartlett has also won the Pacific Travel Writer's Association's award in Germany for the, "2018 Best Tourism Minister of the Year".

Petrojam, Jamaica's national and only petroleum refinery, is co-owned by the Government of Venezuela. Petrojam, "..operates a 35,000 barrel per day hydro-skimming refinery, to produce Automotive Diesel Oil; Heavy Fuel Oil; Kerosene/Jet Fuel, Liquid Petroleum Gas (LPG), Asphalt and Gasoline." Customers include the Power industry, Aircraft refuellers, and Local Marketing companies. On 20 February 2019, the Jamaican Government voted to retake ownership of Venezuela's 49% share.

Jamaica's agricultural exports are sugar, bananas, cocoa, coconut, molasses oranges, limes, grapefruit, rum, yams, allspice (of which it is the world's largest and "most exceptional quality" exporter), and Blue Mountain Coffee which is considered a world renowned gourmet brand.

Jamaica has a wide variety of industrial and commercial activities. The aviation industry is able to perform most routine aircraft maintenance, except for heavy structural repairs. There is a considerable amount of technical support for transport and agricultural aviation. Jamaica has a considerable amount of industrial engineering, light manufacturing, including metal fabrication, metal roofing, and furniture manufacturing. Food and beverage processing, glassware manufacturing, software and data processing, printing and publishing, insurance underwriting, music and recording, and advanced education activities can be found in the larger urban areas. The Jamaican construction industry is entirely self-sufficient, with professional technical standards and guidance.

Since the first quarter of 2006, the economy of Jamaica has undergone a period of staunch growth. With inflation for the 2006 calendar year down to 6.0% and unemployment down to 8.9%, the nominal GDP grew by an unprecedented 2.9%. An investment programme in island transportation and utility infrastructure and gains in the tourism, mining, and service sectors all contributed this figure. All projections for 2007 show an even higher potential for economic growth with all estimates over 3.0% and hampered only by urban crime and public policies. Jamaica was ranked 78th in the Global Innovation Index in 2023.

In 2006, Jamaica became part of the CARICOM Single Market and Economy (CSME) as one of the pioneering members.

The global economic downturn had a significant impact on the Jamaican economy for the years 2007 to 2009, resulting in negative economic growth. The government implemented a new Debt Management Initiative, the Jamaica Debt Exchange (JDX) on 14 January 2010. The initiative would see holders of Government of Jamaica (GOJ) bonds returning the high interest earning instruments for bonds with lower yields and longer maturities. The offer was taken up by over 95% of local financial institutions and was deemed a success by the government.

Owing to the success of the JDX program, the Bruce Golding-led government was successful in entering into a borrowing arrangement with the IMF on 4 February 2010 for the amount of US$1.27b. The loan agreement is for a period of three years.

In April 2014, the Governments of Jamaica and China signed the preliminary agreements for the first phase of the Jamaican Logistics Hub (JLH) – the initiative that aims to position Kingston as the fourth node in the global logistics chain, joining Rotterdam, Dubai and Singapore, and serving the Americas. The Project, when completed, is expected to provide many jobs for Jamaicans, Economic Zones for multinational companies and much needed economic growth to alleviate the country's heavy debt-to-GDP ratio. Strict adherence to the IMF's refinancing programme and preparations for the JLH has favourably affected Jamaica's credit rating and outlook from the three biggest rating agencies. In 2018, both Moody's and Standard and Poor Credit ratings upgraded Jamaica's ratings to both "stable and positive" respectively.