Exports Earnings Fall As Import Expenditure Rises

• Exports to Jamaica’s top trading partners increased by 14% to US$173.1Mn for the first two months of 2022 compared to the corresponding period last year. These partners are the US, United Kingdom, Canada, Puerto Rico, and Finland. 
• A report from the Statistical Institute of Jamaica (STATIN) indicated that the out-turn for January and February was largely attributed to higher exports of bunker C fuel oil and Turbo A1 fuel to the USA. 
• However, total export earnings fell by 9.5% to US$208.5Mn compared to US$230.4Mn earned in the similar period in 2021. The decline was primarily due to a 66.6% fall in the value of outflows in the category ‘Crude Materials’. 
• Further, domestic exports, which accounted for 84.6% of total exports, declined by 11.8% to US$176.4Mn due to an 80.6 percentage point fall in the export of alumina owing to the closure of Jamalco. 
• Meanwhile, Jamaica’s import expenditure increased to just over US$1Bn, consequent on a 32.4% increase in imports for the review period. This was due to increased spending on all categories of imported goods likely owing to the global rise in the price of commodities and consumer goods stemming from the war on Ukraine and elevated supply chain challenges. 
• Imports of ‘Raw Materials/Intermediate Goods’ rose by 46.6%, the total spend on imports of Consumer Goods increased by 53.7%, while imports of ‘Fuels and Lubricants’ increased by 10.7% over the similar period in 2021.

(Sources: STATIN & NCBCM Research)