Editing Economy of Jamaica (section)

== Economic history ==
Before independence, Jamaica's economy was largely focused on agriculture with the vast majority of the labor force engaged in the production of sugar, bananas, and tobacco.<ref name=":0">{{Cite book|title=Quarterly Digest of Statistics No. 2|author=Central Bureau of Statistics Jamaica B.W.I.|publisher=The Government Printer|year=1947|location=Duke Street, Kingston}}</ref> According to one study, 18th century Jamaica had the highest wealth inequality in the world, as a very small, slave-owning elite was extremely wealthy while the rest of the population lived on the edge of subsistence.<ref>{{Cite journal|last1=Burnard|first1=Trevor|last2=Panza|first2=Laura|last3=Williamson|first3=Jeffrey G.|date=October 2017|title=The Social Implications of Sugar: Living Costs, Real Incomes and Inequality in Jamaica c1774|journal=NBER Working Paper No. 23897 |doi=10.3386/w23897 |doi-access=free}}</ref><ref>{{Cite web|url=http://voxeu.org/article/wealth-poverty-and-inequality-colonial-jamaica|title=Sugar and slaves: Wealth, poverty, and inequality in colonial Jamaica|last1=Burnard|first1=Trevor|last2=Panza|first2=Laura|date=2017-12-06|website=VoxEU.org|access-date=2017-12-06|last3=Williamson|first3=Jeffrey|archive-date=23 November 2019|archive-url=https://web.archive.org/web/20191123044309/https://voxeu.org/article/wealth-poverty-and-inequality-colonial-jamaica|url-status=live}}</ref>

These products were mainly exported to the United Kingdom, Canada, and to the United States of America.<ref name=":0" /> Jamaica's trade relationships expanded substantially from 1938 to 1946, with total imports almost doubling from £6,485,000 to £12,452,000.<ref name=":0" /> After 1962, the Jamaican government pushed for economic growth and all sectors excluding bauxite/alumina, energy, and tourism had shrunk between 1998 and 1999. In 2000, Jamaica experienced its first year of positive growth since 1995 due to continued tight macroeconomic policies.<ref name="m.state.gov" />

Inflation fell from 25% in 1995 to single digits in 2000, reaching a multidecade low of 4.3% in 2004. Through periodic intervention in the market, the central bank also has prevented any abrupt drop in the exchange rate. The Jamaican dollar has been slipping, despite intervention, resulting in an average exchange rate of J$73.40 per US$1.00 and J136.2 per €1.00 (February 2011).<ref>{{cite web|url=http://www.oanda.com/convert/fxhistory|title=Historical Currency Converter - OANDA|website=www.oanda.com|access-date=12 June 2008|archive-date=20 July 2006|archive-url=https://web.archive.org/web/20060720101840/http://oanda.com/convert/fxhistory|url-status=live}}</ref> In addition, inflation has been trending upward since 2004 and is projected to once again reach a double digit rate of 12-13% through the year 2008 due to a combination of unfavorable weather damaging crops and increasing agricultural imports and high energy prices.<ref>[http://www.jamaicaobserver.com/magazines/Business/html/20080103T220000-0500_131002_OBS_JAMAICA_S_ECONOMIC_AND_FINANCIAL_MARKET_OUTLOOK_FOR_____.asp Jamaica's economic and financial market outlook for 2008 - JAMAICAOBSERVER.COM<!-- Bot generated title -->] {{webarchive|url=https://web.archive.org/web/20080930122439/http://www.jamaicaobserver.com/magazines/Business/html/20080103T220000-0500_131002_OBS_JAMAICA_S_ECONOMIC_AND_FINANCIAL_MARKET_OUTLOOK_FOR_____.asp |date=30 September 2008 }}</ref>

Over the last 30 years, real per capita GDP increased at an average of just one percent per year, making Jamaica one of the slowest growing developing countries in the world.

To reverse this trajectory, the Government of Jamaica embarked on a comprehensive and ambitious program of reforms for which it has garnered national and international support:  a four-year Extended Fund Facility (EFF)  by  the [[International Monetary Fund]] (IMF) providing  a  support package of US$932 million;  World Bank Group and the Inter-American Development Bank (IDB) programs providing  US$510 million each to facilitate the GoJ's economic reform agenda to stabilize the economy, reduce debt and create the conditions for growth and resilience.. In addition, the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) will continue to support private sector development.

The reform program is beginning to bear fruit: Institutional reforms and measures to improve the environment for the private sector have started to restore confidence in the Jamaican economy. Jamaica jumped 27 places to 58 among 189 economies worldwide in the 2015 Doing Business ranking, the country's credit rating has improved and the Government has successfully raised more than US$2 billion in the international capital in the markets in 2014 and 2015..

Despite some revival, economic growth is still low: the Jamaican Government is forecasting real gross domestic product (GDP) growth of 1.9 per cent for the fiscal year 2015/2016 and the country continues to be  confronted by serious social issues that predominantly affect youth, such as high levels of crime and violence and high unemployment. Jamaica, which had seen its poverty rate drop almost 20 percent over two decades, saw it increase by eight percent in a few years.

The unemployment rate in Jamaica is approximately  6.0% (April 2022, Statistical Institute of Jamaica), with youth unemployment more than twice the national rate, albeit trending downwards (15%). However, among Jamaica's assets are its skilled labor force and strong social and governance indicators.<ref>{{cite web|url=http://www.worldbank.org/en/country/jamaica/overview|title=Overview|access-date=16 January 2016|archive-date=25 August 2019|archive-url=https://web.archive.org/web/20190825054308/https://www.worldbank.org/en/country/jamaica/overview|url-status=live}}</ref>