Survey Says Economy Remained on Course In 2024 Despite Significant Setbacks

Jamaica’s economy remained broadly on course in 2024 despite significant setbacks caused by extreme weather events and other external challenges, according to the latest Economic and Social Survey Jamaica (ESSJ).

Released by the Planning Institute of Jamaica (PIOJ), the report notes that while real output contracted during the year, key macroeconomic targets were maintained, reflecting continued fiscal discipline and policy alignment.

The PIOJ states that the country faced two major hydrological shocks during the year, most notably the passage of Hurricane Beryl in July. The Category Four system caused widespread disruptions across multiple sectors, with damage and losses estimated at $56.7 billion, equivalent to approximately 1.9 per cent of gross domestic product (GDP).

Later in the year, Tropical Storm Rafael compounded the situation when it brought intense rainfall to southern parishes in November. The storm resulted in additional damage and losses valued at $1.3 billion, further straining infrastructure and agricultural output already weakened by earlier weather impacts.

Beyond the weather-related shocks, the economy also contended with constraints in the tourism sector, including difficulties in securing adequate airlift due to industrial action at aircraft manufacturer Boeing. This was exacerbated by two travel advisories issued by the United States, urging potential visitors to reconsider travel to Jamaica, which dampened demand in one of the country’s key foreign exchange-earning industries.

Industrial performance was similarly affected by both planned and unplanned factory downtime, alongside other operational challenges that limited productivity across several sectors. These combined pressures contributed to the overall contraction in real output, even as underlying economic fundamentals remained relatively stable.

Despite these headwinds, Jamaica’s long-term development agenda continued to show resilience. The Vision 2030 Jamaica – National Development Plan entered its 16th year of implementation in 2024, with mixed but generally positive outcomes.

International Development Partners maintained strong support for Jamaica’s development priorities through Official Development Assistance (ODA). New and ongoing commitments totalled US$1.7 billion, with disbursements amounting to US$136.4 million. The cooperation programme of the People’s Republic of China remained the largest contributor, with a portfolio valued at US$616.8 million, while the social infrastructure sector received the largest share of funding at 34.8 per cent.

The PIOJ further indicates that key focus areas under the sustainable development agenda included strengthening policy and regulatory frameworks, enhancing climate resilience, and advancing spatial planning. Jamaica also improved its standing in the Environmental Performance Index, ranking 68 out of 180 countries with a score of 48.5, reflecting gradual environmental progress.

Overall, the ESSJ findings suggest that while 2024 was marked by significant disruptions following the country’s full recovery from the COVID-19 pandemic in 2023, Jamaica managed to sustain forward momentum. With a new phase of economic growth under way, the country continues to navigate vulnerabilities while advancing towards its long-term national development goals.