In 2024, Jamaica's business landscape showed signs of steady growth driven by tourism, remittances, and bauxite mining. Unemployment hit a recent low of 4.4%. However, the economy faced challenges including a contraction in real GDP due to Hurricane Beryl and concerns about global economic slowdowns.
Prudent macroeconomic management, anchored in debt reduction and inflation-targeting monetary policy, enabled the country to weather successive economic shocks. The government continued efforts in fiscal consolidation while providing temporary assistance to vulnerable households and businesses.
The Jamaican Government focuses on economic reforms, infrastructure improvements and investment in renewable energy. Despite these efforts, high public debt, unemployment, and inflation persist. The country is also working to diversify its economy by developing the technology and agricultural sectors to ensure long-term stability and growth.
Kingston Harbour continues to enjoy significant maritime traffic due to its easy access to the Panama Canal shipping lanes. Leveraging its port and logistics capacity, proximity to key markets, and its prime location, Jamaica is positioned to become a major multi-modal logistics hub in the region thanks to its port and logistics capacity and proximity to key markets. This is emphasized by investments that helped the country host post-Panamax vessels.
Jamaica is also highly vulnerable to external shocks. Agriculture and tourism, which account for more than half of the jobs, are particularly vulnerable to climate-related events. Hurricane Beryl, which hit Jamaica in July 2024, induced damages estimated at around $67 million and negatively impacted agriculture, utilities, construction, and tourism sectors. While inflation eased in 2024, it spiked in August 2024 to 6.4 percent, driven by Hurricane Beryl’s temporary impact on food and utility prices.
Jamaica’s renewable energy capacity stood at 188 MW by December 2024, generating an estimated 481,432-megawatt hours annually. This accounted for 10% of the nation's total electricity production.
For the 2025-26 year, the Government of Jamaica will focus on generating more robust levels of inclusive growth by engendering higher levels of productivity, specifically in the areas of:
- Human capital development
- Diversification of the country’s economic base through the development of new industries
- Infrastructure development, particularly improvements in the road network, expanding the water supply network and diversifying the energy mix
- Easing the cost and speed of doing business
- Strengthening security
- Fostering inclusive growth
