Jamaica’s trade deficit declines by 3% in 2024, totaling US$5.4 billion

Jamaica's trade deficit at the close of 2024 decreased by 3.0 per cent, settling at US$5.4 billion, compared to US$5.9 billion in 2023, according to a statement issued Friday by the Statistical Institute of Jamaica (STATIN).

A trade deficit occurs when a country's imports exceed its exports.

In 2024, Jamaica’s total spending on imports amounted to US$7.3 billion, while earnings from total exports were recorded at US$1.9 billion.

STATIN said the value of imports over the 12-month period declined by 4.0 per cent when compared to the US$7,6 billion in 2023. "This was largely due to a decline in imports of “raw materials/intermediate goods” and “fuels and lubricant” which declined by 10.6 per cent and 6.9 per cent, respectively," it said.

However, revenue from total exports for January-December 2024 decreased by 6.7 per cent. It said this was attributable to a 62.9 per cent fall in the value of re-exports. On the other hand, domestic exports increased by 11.0 per cent compared to the same period in 2023.

Jamaica’s main trading partners in 2024 were the United States, China, Brazil, Japan, and Colombia.

STATIN said expenditure on imports from these countries fell by 4.0 per cent to US$4.5 billion, largely driven by lower spending on mineral fuels.

Exports to the top five destinations—USA, Russian Federation, Netherlands, Canada, and Iceland—rose by 20.0 per cent to US$1.4 billion, primarily due to higher exports of crude materials.

STATIN said trade with major blocs showed varying trends.

It noted that imports under the United States-Mexico-Canada Agreement (USMCA) fell by 7.9 per cent to US$3.1 billion, while imports from CARICOM countries dropped by 5.1 per cent.

Conversely, expenditure on imports from the European Union rose slightly by 0.2 per cent to US$590 million.

Exports to the USMCA, EU, and CARICOM also saw declines, with drops of 0.8 per cent, 2.3 per cent, and 14.8 per cent, respectively.

The overall trade deficit reduction signals a marginal improvement in Jamaica’s economic balance for the year, with key areas such as domestic exports showing growth despite global trade challenges.

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