Jamaica economy contracts 4.1% in first quarter
KINGSTON, Jamaica — Jamaica’s economy contracted by 4.1 per cent in the first quarter of 2026, a less severe decline than earlier preliminary estimates from the Planning Institute of Jamaica (PIOJ) had suggested.
Final data from the Statistical Institute of Jamaica (Statin) show that total value added at constant 2015 prices declined between January and March when compared with the same period last year. PIOJ had previously estimated a 5.9 per cent contraction for the quarter.
Statin said the decline was driven by lower output in both major segments of the economy, with the goods-producing industries down 7.3 per cent and services down 3 per cent.
Agriculture, forestry and fishing fell 18.3 per cent, reflecting the lingering impact of Hurricane Melissa on crop and livestock output. Mining and quarrying declined 23.5 per cent, while construction slipped 1.4 per cent.
Manufacturing was the only goods-producing industry to grow, increasing by 0.6 per cent.
In services, accommodation and food service activities fell 16.6 per cent, weighed down by hotel closures and lower visitor arrivals. Electricity, water supply and waste management declined 10.2 per cent, while transport and storage fell 5.5 per cent.
Financial and insurance activities was the only services industry to record growth, rising 2.9 per cent.
Despite the year-on-year contraction, the economy improved when compared with the previous quarter. On a seasonally adjusted basis, real value added increased by 3.3 per cent over the October to December 2025 quarter.