Dear Editor,

Jamaica has made significant economic strides in recent decades, transforming from a largely agriculture-based economy to one increasingly driven by services and industries. Since the 1990s, Jamaica’s economy has diversified, expanding into areas like tourism, finance, telecommunications, and manufacturing. This has fuelled a period of solid, if uneven, growth.

Jamaica’s gross domestic product (GDP) has grown at an average annual rate of 1.1 per cent over the past 30 years. While modest compared to some faster-growing developing economies, this still represents a marked improvement from previous decades when economic stagnation was common. Driving this growth has been increased investment, particularly foreign direct investment (FDI) in sectors like mining, tourism, and manufacturing. The Jamaican Government has also undertaken various structural reforms to boost competitiveness, including privatising State-owned enterprises, reducing trade barriers, and streamlining bureaucratic processes.

However, Jamaica faces ongoing economic challenges. Unemployment remains high at over 12 per cent, especially among youth. Poverty rates have declined but still sit above 17 per cent. Public debt levels also remain elevated at around 95 per cent of GDP as of 2021. Addressing these issues to create more inclusive growth will require strategic policy efforts on multiple fronts.

First, further diversifying Jamaica’s economy beyond traditional sectors will be critical to driving future job growth and resilience. Promising areas to target include higher-value services like business process outsourcing as well as advanced manufacturing and the creative industries. Upgrading workforce skills to align with shifting industry demands must complement this economic transition.

Second, boosting competitiveness and productivity across the economy needs to be prioritised. This means improving infrastructure, education quality, access to financing, and the general ease of doing business. Jamaica has made progress on business reforms but more work can be done to remove red tape and corruption.

Third, bringing more small and medium-sized enterprises into the formal economy will broaden the productive base. Offering tax incentives, training programmes, and easier business registration are examples of policies that could drive formalisation. A larger formal sector will expand job opportunities and tax revenues.

Finally, managing Jamaica’s debt burden remains imperative for sustained fiscal health. Continuing prudent macroeconomic policies will be key, as will structural reforms to control health-care and pension costs over the long term. Expanding the tax base, including through formalisation, can also provide the Jamaican Government with greater resources to invest in growth-enabling areas.

With strong leadership and continued reform, Jamaica can build on the economic gains made in recent decades. Strategic investments in competitiveness, human capital, and inclusive growth will help Jamaica overcome remaining challenges and achieve its full economic potential.

The time is right for Jamaica to bring greater prosperity to all its citizens and secure its standing as a Caribbean leader.

Janiel J McEwan

janielmcewan17@gmail.com