Trade deficit shrinks, while country shifts reliance towards Caricom in 2014
JAMAICA’S trade deficit shrank by US$125 million, or by 16 per cent during the first two months of 2014, when compared to year-earlier levels.
At the same time, the country’s trade deficit with its Caricom trading partners climbed by US$18 million to US$116 miillion, due largely to higher mineral fuel imports from the region, according to data recently published by the Statistical Institute of Jamaica (Statin).
The country’s export earnings declined by over US$100 million to US$210 million during the period, but spending on imports totalled US$880 million, or US$230 million less than in the comparative period last year.
A US$160-million reduction in chemical imports and an US$80-million decline in the oil import bill were the main drivers for lower spending on foreign goods.
The decline in the expenditure on imported chemicals corresponded with a US$230-million, or 30 per cent fall in raw materials and intermediate goods, which was largely attributed to the significant decrease in expenditure on industrial supplies.
Alumina export earnings plunged from US$85 million during the first two months of 2013 to US$56 million in the review period, while bauxite exports fell by US$2.8 million, or 13.5 per cent to US$18 million.
Coffee exports dropped 20 per cent to US$2.1 million during the two-month period in 2014, while citrus exports fell by 10 per cent to US$600,000.
Imports of goods from Caricom region during the first two months of 2014 were valued at US$126 million compared to US$109 million in the corresponding 2013 period.
Total exports to the region grew by 0.1 per cent to US$10 million.
“Of this amount domestic exports accounted for US$9.2 million, up from US$8.8 million in the comparable 2013 period,” said Statin. “Re-exports decreased and were valued at US$1.1 million, compared to the US$1.5 million recorded for the corresponding 2013 period.
“Despite their decline the major groups of domestic exports were ‘food’, valued at US$4.9 million, and ‘beverages & tobacco’ worth US$1.5 million. These two sub-categories decreased by 4.4 per cent and 11.2 per cent, respectively.”
