Economy

Jamaicas economy is improving in the wake of the global recession, only still faces serious long-term problems: a sizable ware trade deficit, large-scale unemployment and underemployment, and a debt-to-GDP ratio of almost one hundred thirty%. Structural weaknesses, low levels of government infrastructure investment, and high-cost animation erode confidence in the productive sector. High unemployment exacerbates the serious law-breaking problem, including gang violence that is fueled by the drug trade. Jamaicas exhausting debt burden--the quaternth-highest per capita--is the result of government bailouts to ailing sectors of the economy, most notably the pecuniary sector in the mid-to-late 1990s. The government faces the difficult prospect of having to execute fiscal discipline in revise to maintain debt payments speckle simultaneously attacking serious crime challenges that are hampering economic growth. It also needs to address the high cost of energy to successfully expand the economy. The private sector complains sharply most challenges to doing business on the island, but the government appears unwilling to eff these obstacles and resolve them.



Although official statistics show decades of economic stagnation in Jamaica, economists at the World Bank (WB) and Inter-American Development Bank (IDB) choose estimated substantial growth of the informal sector. Such studies suggest that inclusion of the informal sector would raise Jamaicas GDP statistics by as much as 40%.

The countrys economy is to a great extent dependent on services, which now account for more than 60% of GDP. Jamaica continues to derive most of its foreign exchange from tourism, remittances, and bauxite/alumina. Remittances account for virtually 20% of GDP and are equivalent to tourism revenues. Remittances plunge 15% from 2008 to 2009, but have recovered and are go on where they were before the global economic downturn. Three of Jamaicas four bauxite/alumina firms suspended operations in 2009 due to falling demand amid the...If you want to get a full essay, order it on our website: Orderessay



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