Jamaica’s exports of alumina surged 57.8 percent, while beverages and tobacco jumped 32.4 percent in January this year, helping to push the country’s export earnings up 16.7 percent over January 2020 to US$117 million, data from the Statistical Institute of Jamaica (STATIN) show.
The increase in exports helps to trim the trade gap for goods along with a decline in imports for January this year.
Imports for the first month of 2021, amount to US$462 million, a decline of 12.1 percent compared to January 2020. “The decline was largely attributable to lower imports of Consumer Goods that fell by 23 percent and Transport Equipment with a decline of 33.4 percent,” Statin reported.
The result of the trade data is that the trade gap narrowed to US$345 million from $412 million in 2020, the second year that the gap narrowed in January, following the narrowing in January last year, from $461 million in January 2019.
A portion of the sharp fall in imports in 2021 is tied to the reduced tourist arrivals in the country as well as curtailment in some other economic activities in the country. As tourism visitor arrival numbers continue to increase, the demand for more imports will grow as well and the trade gap could increase going forward. On the flip side the country will generate more service inflows that will counterbalance any worsening in the trade gap.
Major gains in Jamaica’s Caricom trade
Jamaica’s trade deficit with CARICOM dropped sharply or 29.7 percent to end at US$123 million at the end of the year to April 2016, for a fall of US$52 million, from US$174.5 million for the similar period in 2015.
Jamaica’s imports from CARICOM declined by 25.3 percent to US$148 million, from US$198 million for January to April 2015. Mineral Fuels fell 36.5 percent to US$72 million from US$113 million, Chemicals declined by 29.2 percent to US$8 million and Food amounted to US$46 million, a fall of US$3.5 million or 7 percent. Beverages & Tobacco imports declined by 26.2 percent to US$7.7 million and Manufactured Goods rose 14.5 percent to US$7.5 million.
Exports to the region increased by 18.3 percent or US$2 million, to US$25 million. Re-exports climbed 53.4 percent were to US$5.6 million. Domestic exports were valued at US$19.7 million, 1.2 percent less than the US$20 million recorded for January to April 2015. Lower exports of Manufactured Goods were the main contributor to this decline, due mainly to lower exports of cement related products.
Drop in export pushes up Jamaica’s trade deficit
Jamaica’s trade deficit during the first seven months of 2014, deteriorated compared to the same period last year. The worsening position occurred as a result of a sharp fall in non-traditional exports, rather than increased imports.
The deficit ended at US$2.613 billion, compared to US$2.573 billion in the comparable period for 2013. The deterioration flowed from merchandise imports during the 7 months, valued at US$3.47 billion, decreasing by 2.4 percent or US$86 million, compared to the $3.55 billion recorded in the similar 2013 period. On the other hand, exports for the 2014 period, amounted to US$852 million, a decline of 12.9 percent or US$127 million below the US$979 million earned in the similar 2013 period.
Imports| According to the Statistical Institute of Jamaica (Statin), the decline in imports was largely influenced by lower spending on importation of Mineral Fuels, Chemicals, Beverages & Tobacco.
Exports fall| During the first seven months to July, traditional exports earned US$453 million, falling by 5.3 percent or US$25.6 million below the exports earnings during the 2013 period. Non-traditional export earnings from January to July 2014, fell by US$91 million or 20.2 percent, to US$360 million.