A robust recovery in tourism and travel, continued strong inflows from remittances, and increased exports were among the factors chairman of the Economic Programme Oversight Committee (EPOC) Keith Duncan listed that contributed to Jamaica earning more for goods and services sold to the world than it spends on importing them for the financial year 2022/23.

“Now this is something worthy of highlighting: the fact that Jamaica achieved its first current account surplus for the financial year 2022/23, for the first time in decades,” he told reporters gathered online and in person for the EPOC quarterly briefing.

Duncan argued that while analysts and media personnel tend to look at the trade off in imported and exported goods, special attention should be given to the remittances and services line items.

Jamaica saw its trade position running a positive $352.4 million at the end of March 2023, meaning that the country received more inflows of foreign exchange than there were outflows. That positive trade balance continued into the first quarter of fiscal year 2023/24, when the country recorded a $241-million surplus.

“This surplus marks a milestone achievement, representing the first time in decades that Jamaica has not recorded a current account deficit,” Duncan said, adding that it can be credited to “robust recovery in tourism and travel, increased exports, and continued strong inflows from remittances”.

Of note, Jamaica saw a massive increase in services exported, which jumped from US$97 million in 2022/23 to US$1,635.1 as at March 31 this year. While the country’s overall exports rose by US$50 million, its imports fell by US$150 million.

“So, therefore, when you take all this into account, that means that Jamaica [was] in receipt of more US dollars than it [was] spending US dollars in 2022/23,” Duncan explained.

For the year, remittances to Jamaica were marginally lower than in 2022/23, but were above pre-COVID levels.

Calling the current account surplus a positive economic indicator, the EPOC chairman questioned whether or not the feat can be sustained. He, however, expressed cautious optimism, pointing out that the Bank of Jamaica anticipates a reversion to a negative balance of payments account for 2023/2024.

Notwithstanding, Duncan said that he expects the continued growth in exports and increase in tourism receipts will continue to contribute to the Jamaica having a current account surplus.

He added that the private sector has a role to play, especially given the trade push from the Government of Jamaica. Still, he commended the manufacturing sector for “building its muscles” during the COVID-19 pandemic when there were supply chain challenges and it had to look into using import substitutions.

Duncan also anticipates that tourism will continue to grow and contribute to the current account balance taking into account additional rooms to be opened in the upcoming calendar year.