Jamaica External Debt (% of GDP)

External Debt in Jamaica

Annual economic growth eased to 3.8% in Q4 (Q3: +5.9% yoy) due to softer expansions in the services and agricultural sectors. Within the former, hospitality and retail growth decelerated significantly amid a dwindling recovery in tourist arrivals. That said, the industrial sector saw a stronger expansion in Q4, thanks to mining output almost doubling due to the reopening of the Jamalco alumina refinery. In Q1, available data shows a positive picture: In January–March, inflation continued to decline, while in January–February, net remittances continued to increase—likely boosting private spending. Moreover, year-on-year tourist arrivals jumped by 152% in January, reaching 88% of their pre-Covid January 2020 level. This ongoing recovery bodes well for services activity in both Q1 and the year as a whole.