JAMAICA’S international merchandise trade deficit showed modest improvement in January 2025, driven by a sharp decline in imports even as export revenues faced significant challenges, according to data released by the Statistical Institute of Jamaica (Statin).

The country’s total imports fell 6 per cent year-over-year to US$647.6 million, while exports plummeted 15 per cent to US$134.2 million. This resulted in a narrowing of the trade deficit to -US$513.4 million, compared to -US$531.2 million in January 2024.

The drop in imports was led by a 34 per cent collapse in spending on fuels and lubricants, including a 74 per cent plunge in the value of crude oil purchases as prices declined during the month. Reduced demand for capital goods and transport equipment further contributed to the import decline.

On the export front, a 50 per cent freefall in mineral fuels revenue — linked to global price volatility — dragged down overall performance. Re-exports, once a bright spot, collapsed from US$32.3 million in 2024 to just $4.8 million.

Yet domestic exports provided a silver lining, rising 3 per cent year-over-year. Growth was driven by mining & quarrying ueled by higher alumina and bauxite shipments. Agricultural exports rose as well, going up by nearly 50 per cent, with yam exports surging almost 80 per cent and coffee sales jumping over 650 per cent to US$1.5 million.

As for trade partnerships, the US continues to dominated, with that country sending just about 35 per cent of Jamaica’s imports in January. China and Nigeria followed. Together, the aforementioned countries collectively account for over 60 per cent of imports. Notably, purchases from Nigeria — a key oil supplier — rose sharply, offsetting reduced EU and Caricom trade.

In the export markets, the US also dominated, account for 54 per cent of the nation’s total sales abroad. Russia and Iceland also figured prominently, though they were a distant second and third to the US as an export market for Jamaica. Exports to the USMCA bloc (US, Mexico, Canada) grew 16 per cent, while EU and Caricom trade slumped by 60 per cent and 37 per cent, respectively, in the first month of this year.