Trade Deficit Expands Despite Lower Imports

  • Jamaica's trade balance experienced a deterioration of 1.1%, reaching US$2,742.6Mn during the period from January to June 2024. This decline occurred despite a reduction in the overall value of imports, as the decrease in exports was more pronounced.
  • For the first six months of 2024, Jamaica’s total spending on imports was valued at US$3,687.4Mn, while earnings from total exports were valued at US$944.8Mn, according to the Statistical Institute of Jamaica (STATIN).
  • The value of imports over the period declined by 1.5% when compared to US$3,744.4Mn spent from January to June 2023. This decrease was largely attributable to lower imports of “Raw Materials/Intermediate Goods” and “Fuels and Lubricant”, which fell by 13.9% and 1.6%, respectively.
  • The decrease in spending on "Raw Materials/Intermediate Goods" was primarily attributed to a drop in imports of 'Industrial Supplies,' 'Construction Materials,' and 'Food (including Beverages) Mainly for Industry.' Additionally, reduced imports of 'Other Fuels & Lubricants,' 'Motor Spirit,' and 'Crude Oil' significantly contributed to the decline in the import value of "Fuel and Lubricants" for the six months ending in June 2024.
  • Revenues from exports were 8.4% below the US$1,030.9Mn earned in the similar 2023 period. This downward movement was due primarily to a 64.8% fall in the value of re-exports of “Mineral Fuels”. Earnings from re-exports declined to US$114.7Mn for the January to June 2024 period.
  • The five primary trading partners from January to June 2024 were the United States, China, Brazil, Japan, and Trinidad and Tobago accounting for 38.5%, 8.8%, 5.0%, 4.1% and 3.2% of total imports, respectively. Import spending on goods from these countries declined by 6.3% to US$2,195.1Mn, down from US$2,341.8Mn largely driven by a 19.0% reduction in imports of "Mineral Fuels" from the USA and Trinidad and Tobago.
  • On the export side, the USA (40.4), Iceland (8.4%), the Russian Federation (7.9%), the Netherlands (7.3%), and Canada (5.5%) were the top five destinations. Revenues from exports to these countries increased by 23.7% to US$657.0Mn, driven by a 76.3% rise in the value of "Crude Materials" export.

(Source: STATIN)