Jamaica

Jamaica

Updated December 9, 2021
Jamaica
Political and Economic Environment
country’s high levels of public debt. As a result, public debt
Jamaica, the most populous English-speaking Caribbean
fell below 100% of GDP in 2019 and was expected to
nation, has had a relatively stable parliamentary political
decline to below 60% by 2026, according to the World
system stemming from its history of British colonial rule,
Bank. The pandemic set back Jamaica’s austerity plans, as
though extensive political violence often marred elections
the government moved to protect the economy and
in the 1970s and 1980s. Two political parties—the center-
vulnerable groups through increased spending and
left People’s National Party (PNP) and the center-right
increased financing provided by the IMF, World Bank, and
Jamaica Labour Party (JLP)—have dominated the political
IDB. Although public debt increased to over 100% of GDP
system since before the country’s 1962 independence.
in 2020, it declined to an estimated 94% of GDP in 2021
and is expected to fall further as the economy recovers.
Figure 1. Jamaica Map
Jamaica at a Glance
Population: 2.7 mil ion (2020, IMF est.).
Area: 4,244 mil ion square miles, slightly smaller than
Connecticut.
GDP: $13.97 bil ion (2020, current prices, IMF).
Real GDP Growth (constant prices): 1.0% (2019); -10.0%
(2020); 4.6%, (2021, projected). (IMF)
Per Capita GDP: $5,103 (2020, current prices, IMF est.).
U.S. Trade: U.S. Imports, $384 mil ion; U.S. Exports, $1.7
bil ion (2020, DOC)

Legislature: Bicameral Parliament, with 63-member elected
Source: CRS.
House of Representatives and 21-member appointed Senate.
Sources: International Monetary Fund (IMF) and U.S.
Current Prime Minister Andrew Holness of the JLP was
Department of Commerce (DOC), as presented by Trade
first elected in 2016 when his party defeated the PNP, led
Data Monitor.
by then-Prime Minister Portia Simpson Miller, who had led
the government since 2011. Holness and the JLP won a
second term in September 2020 in which the party
As of December 8, 2021, Jamaica reported over 2,400
substantially increased its representation in parliament from
deaths from COVID-19 since the pandemic began, with a
a slim majority to control 49 out of 63 seats in the House of
mortality rate of 81 per 100,000, according to Johns
Representatives. Although turnout was low, Holness’s
popularity reportedly helped secure the JLP’s victory.
Hopkins University. The country experienced a third wave

of cases in July 2021 that only began to decline in
September. Vaccine accessibility and rollout in Jamaica
The Jamaican economy, which is heavily dependent on
have been slow compared with most other Caribbean
services, especially tourism, has been hard hit by the
countries. As of December 8, Jamaica had fully vaccinated
Coronavirus Disease 2019 (COVID-19) pandemic. Even
almost 18% of its population. To date, Jamaica has received
before the pandemic, the World Bank characterized Jamaica
almost 1.1 million vaccine doses through the COVID-19
as an upper-middle-income country struggling due to low
Vaccines Global Access (COVAX) Facility, a mechanism
growth; high public debt; exposure to natural disasters, such
developed by global health organizations to facilitate
as hurricanes and flooding; and the effects of climate
equitable distribution of COVID-19 vaccines. Vaccine
change. According to the International Monetary Fund
hesitancy has been a significant challenge.
(IMF), the economy contracted an estimated 10% in 2020
and is projected to grow 4.6% in 2021. Tourist arrivals fell
High rates of crime and violence have plagued Jamaica for
significantly because of the pandemic. Remittances from
many years. Since the 1990s, much of the violent crime has
Jamaicans abroad are an important source of income and,
been associated with drug trafficking and related intra-gang
despite the pandemic and its economic fallout, grew nearly
and inter-gang feuds. The inflow of illegal firearms also has
20% in 2020 to the equivalent of about $2.9 billion.
been a factor. In 2020, although Jamaica’s 1,301 homicides
were a slight decline from the previous year and a
Jamaica had been making progress since 2013 in
significant improvement from earlier years, the country still
implementing an ambitious economic reform program—
had the highest homicide rate—45.5 per 100,000 people—
supported by the IMF, World Bank, and Inter-American
in all of Latin America and the Caribbean, according to
Development Bank (IDB)—that helped reduce the
Insight Crime. Violent crime has increased further in 2021.
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Jamaica
Since 2017, the Holness government has used zones of
Jamaica in 2020, with aluminum ores and oxides
special operations in certain communities to contain the
accounting for 44%. Jamaica has been a beneficiary of the
rise in crime and violence; these zones include enhanced
Caribbean Basin Initiative, a U.S. preferential trade
powers for the security forces and social programs to help
program for Caribbean imports, since its inception in 1984.
vulnerable populations in areas affected by high crime. In
The country is also a beneficiary of the Caribbean Basin
2018, the government began using more stringent states of
Trade Partnership Act, a program begun in 2000 that
emergency (SOEs) to curb crime, but Jamaica’s Supreme
provides tariff preferences for apparel imports. The United
Court ruled these unconstitutional in 2020; the government
States and CARICOM countries signed a trade and
is appealing the ruling. In November 2021, Prime Minister
investment framework agreement in 2013 as a forum for
Holness announced the imposition of SOEs in seven high
discussions on commercial issues.
crime areas. These SOEs were short-lived, however, since
the opposition PNP did not support their extension after an
Antidrug Efforts. Jamaica is the largest Caribbean supplier
initial 14-day period permitted by law.
of marijuana to the United States and a transit point for
cocaine trafficked to the United States and other markets,
U.S.-Jamaica Relations
according to the State Department’s 2021 International
U.S. relations with Jamaica are close, characterized by
Narcotics Control Strategy Report. Marijuana is also
significant economic and cultural linkages and by
trafficked to other Caribbean countries, especially Haiti, in
cooperation on a range of bilateral and transnational issues,
exchange for firearms and other contraband. The State
including efforts to enhance regional security and stability
Department reported that anti-drug cooperation between the
through the Organization of American States. In December
United States and Jamaica remains strong but also noted
2020, the United States and Jamaica held an inaugural
that significant progress will depend on Jamaica’s efforts to
Strategic Dialogue and issued a joint statement in which
target high-level drug traffickers, combat corruption,
they agreed to hold annual high-level meetings to advance
increase extraditions, finalize and implement a national
shared interests in security, prosperity, and democracy in
drug strategy, and strengthen the judicial system so
the Western Hemisphere. According to the State
traffickers are held accountable.
Department, the dialogue’s various include enhancing
security cooperation; addressing climate change; and
U.S. Foreign Aid. Total U.S. foreign assistance to Jamaica
accelerating private-sector growth in clean energy, digital
for FY2020 (obligations, partially reported) amounted to
industries, and green infrastructure projects.
$24.2 million to support various security, economic
development, health, education, and environmental
In April 2021, Secretary of State Antony Blinken met in a
projects. According to the U.S. Agency for International
virtual roundtable with Caribbean Community
Development (USAID), U.S. aid to Jamaica has included
(CARICOM) foreign ministers to demonstrate the U.S.
promoting greater transparency and good governance
commitment to work with all countries in the region to
practices, fostering Jamaican participation in regional
advance bilateral and regional interests. Blinken
security, strengthening basic education, supporting clean
emphasized the strong U.S. partnership with the Caribbean,
energy, decreasing vulnerability to the impacts of climate
including plans to respond to the pandemic and promote
change, and reducing the prevalence of HIV/AIDS. In July
Caribbean regional recovery; cooperation on increasing
2021, USAID announced it was partnering with the World
climate resilience; and continued collaboration on
Bank to issue a catastrophe bond to provide Jamaica with
strengthening security, democratic values, and human
financial protection of up to $185 million for tropical
rights. Prime Minister Holness participated in the April
storms through 2023.
2021 White House-sponsored virtual Leaders’ Summit on
Climate, where he spoke about the special needs of small
Under the Caribbean Basin Security Initiative, the United
island developing states in accessing climate finance.
States has provided Jamaica with support since FY2010 to
reduce illicit trafficking and advance public safety and
Economic Linkages. A majority of the millions of tourists
security. The support has included training, equipment, and
visiting Jamaica each year come from the United States,
technical assistance to increase capabilities to interdict
including both stopover and cruise-ship visitors. The large
suspect sea vessels, investigate and seize criminal assets,
Jamaican-American community in the United States,
counter public corruption, enhance the work of prosecutors
concentrated in New York and Florida, sends billions of
and criminal courts, and support community policing and
dollars in remittances to Jamaica annually. U.S. foreign
youth workforce programs. (Also see CRS In Focus
direct investment on a historical-cost basis in Jamaica was
IF10789, Caribbean Basin Security Initiative.)
estimated at $118 million in 2020, according to the
Department of Commerce, and more than 100 U.S.
With regard to COVID-19 support, the U.S. Embassy in
companies have offices in Jamaica.
Jamaica reports the United States has contributed over $12
million in support of virus protection and control
The United States is Jamaica’s most important trading
throughout the country, including the donation of a field
partner, accounting for about 44% of Jamaica’s total trade.
hospital and a host of medical supplies. To date, the United
Because Jamaica has a services-based economy, it
States has donated 413,000 COVID-19 vaccine doses to
traditionally runs a large trade deficit in goods. In 2020, the
Jamaica, and additional donations are expected.
United States exported almost $1.7 billion in goods to
Jamaica, with petroleum exports accounting for about 28%.
Mark P. Sullivan, Specialist in Latin American Affairs
The United States imported $384 million in goods from
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Jamaica

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