Jamaica enjoyed some encouraging news at the start of the year as the country’s perennial trade deficit narrowed although by a small margin, according to data from Statistical Institute of Jamaica (Statin). Earnings from Non-traditional exports commodities that rose by US28.2 million or 47.5 per cent to US$87.7 million and a cut in the trade deficit with the USA and a reduction in CARICOM imports were the main contributors to this improved position. The deficit was reduced by US$1.2 million to US$401 million for the first month of the year. The improvement came against the back ground of a declined local currency and a sharp narrowing of central government’s fiscal deficit.

The deficit with the United States contracted sharply moving from US$116.4 million to US$78.5 million for the same period.

Jamaica exported 7.7 per cent or US$10.9 million more goods in January this year than was done for the similar month in 2012 resulting in earnings of US$152 million. Imports on the other hand, was a mere US$9.7 million or just 1.8 percent more in January than the same month last year as US$553 million was expended on imported items.

The major commodities to record increases were “Chemicals”, “Food”,“Misc. Manufactured Articles” and Imports of “Chemicals’ which rose sharply by 59.6 per cent or US$36.5 million to US$97.6 million due to higher imports of ethanol products. “Food” increased by US$30.5 million to US$92.2 million or 49.4 per cent and accounted for 16.7 per cent of the import bill. “Misc. Manufactured Articles” accounted for US$34.7 million of imports compared to the US$34.2 million in 2012. “Mineral Fuels, etcetera” which accounts for 32.2 per cent of imports declined by US$71.7 million or 28.7 percent and was valued at US$178.6 million while “Manufactured Goods” declined with a value of US$45.8 million down from US$49.5 million in the similar 2012 period.

Traditional Domestic Exports earned US$58 million in January 2013, a decrease of US$19.4 million or 25.1 per cent when compared to the same period in 2012, due to decreased earnings in two of the three commodity groups, “Mining and Quarrying” and “Manufacture”. “Mining and Quarrying” fell by 0.1 per cent to US$53.5 million in the 2013 review period due to lower earnings from Bauxite. This was valued at US$10.5 million, down from US$11.1 million.  “Manufacture declined by 85.0 per cent or US$19.4 million, moving from US$22.8 million in January 2012 to US$3.4 million in the current 2013 review period.

CARICOM Trade | The country imported US$56.1 million from CARICOM, a decline of 16 per cent amounting to US$10.7 million. A reduction in the value of imports in “Mineral Fuels, etcetera” and “Chemicals” contributed to the overall decline in CARICOM imports. “Mineral Fuels, etcetera” decreased by 30 percent or US$14.3 million to US$33.2 million.

Exports to the Region rose by US$0.5 million or 10.5 percent to US$5.1 million during January 2013. STATIN stated that during 2012, Jamaica’s expenditure on merchandise imports grew by  2.4 per cent or US$155.5 million  to US$6,594.9 million compared to the previous year. Earnings from total exports rose by US$87.5 million or 5.4 per cent to US$1,709.8 million.”