Jamaica’s Economy Posts Positive Growth in Q1 2025
Kingston, Jamaica – The Jamaican economy demonstrated resilience in the first quarter of 2025, experiencing a 1.1% expansion compared to the same period in the previous year. This positive trend, confirmed by the Statistical Institute of Jamaica (STATIN), reflects a robust performance across key sectors of the economy. The growth was primarily fueled by gains in both goods production and services, signaling a broad-based recovery and expansion.
Sectoral Breakdown: Goods and Services Lead the Way
The growth was driven by significant increases in both the goods and services sectors. The goods-producing sector saw a notable 2% increase, while the services sector experienced a 0.8% rise. The composition of the economy reflects the dominance of services, which accounted for 70% of the economic activity, with goods making up the remaining 30%.
Goods Sector: Agriculture and Manufacturing Shine
Within the goods sector, several areas contributed to the overall positive performance. Agriculture led the way with a 3.1% increase, demonstrating the continued importance of this sector to the Jamaican economy. Manufacturing also performed well, rising by 1.7%, indicating a strengthening of the island’s industrial base. Construction activity saw a 1.4% increase, reflecting ongoing investment in infrastructure and development projects. Mining and quarrying experienced a more modest growth of 0.7% but still contributed positively to the sector’s overall performance.
Services Sector: Information and Communications Drives Growth
The services sector also contributed significantly to the economic expansion. Information and communications experienced the most substantial growth, surging by 6.4%. This remarkable increase underscores the growing importance of digital technologies and related services in the Jamaican economy. Transport, storage, and communication also saw positive growth, increasing by 1.9%, reflecting improved efficiency and capacity in the movement of goods and people. Public administration and defense grew by 1.3%, highlighting the role of government services in supporting economic activity.
Several other service-related sectors also reported growth. Accommodation and food services experienced positive results, demonstrating the ongoing recovery of the tourism industry. Finance and insurance also saw increases, reflecting a stable and growing financial sector, which supports broader economic activity. However, not all sectors saw growth. Real estate and renting experienced a dip of 0.4%, and wholesale and retail trade fell by 0.8%.
STATIN’s Base Year Update
In a move aimed at enhancing the accuracy of its economic data, STATIN has updated the base year for nominal GDP to 2015. This adjustment will enable more precise calculations of real GDP, providing a clearer picture of the Jamaican economy’s performance over time.
Looking Ahead
The 1.1% growth in the first quarter of 2025 represents a positive development for Jamaica’s economy. The performance across diverse sectors, including agriculture, manufacturing, information and communications, and finance, signals a broad-based recovery. While challenges may remain in certain areas, the overall trend points towards continued economic expansion, supported by strategic investments and policy initiatives.