The economy of Jamaica is rapidly growing and posted 0.2% growth during the first quarter of 2008 due to rise in import & export and tourist arrivals.
The Planning Institute of Jamaica (PIOJ) maintained it previous Gross Domestic Product (GDP) growth forecast of 3.0% after seeing 0.2% growth in the first quarter of 2008, as reported by Jamaica-Gleaner.
POIJ also revealed that the government revenue reached $10.9 Billion, surpassing from what was predicted in the first quarter of 2008, but the spending reached $17.8 Billion, above than budget. Besides, the trade deficit also increased to US$ 469.5 Million with rise in import by 22.4% to US$ 646.7 Million. The country’s export also increased but the growth rate remained substantially low at 4.8% in the first quarter of 2008.
Growth in import and export is the main driver for economic growth in Jamaica. Actually, the demand for Jamaican products in the importing countries has escalated due to their premium quality. Besides, the raw material used in manufacturing the exported products is available at cheaper rates, therefore, production cost is very low that makes products affordable, resulting in high exports.
On the other side, the import in the country is rising with growing population and proliferating businesses. Another factor contributing to growth in the Jamaican economy is rise in the education level. The banking services become modernized and facilities such as Internet and mobile banking reflect the growing economy of the country. In addition, credit and debit card services are relentlessly growing in the country. People have also shown inclination towards investment in the insurance sector; as a result, the country’s economy is continuously growing.
Traditionally, Jamaica is famous for its beautiful beaches and huge number of tourist arrivals. As the tourism industry is a potential source for earning foreign money and gives support to the economy, with continuous rise in tourists arrival, the country’s foreign currency stock is mounting.
According to a Research Analyst at RNCOS, “Economic growth in the Jamaican island is leading to growth in other industrial sectors. Seeing this high economic growth and favorable business conditions, foreign investors are also coming forward to invest in the country.”
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