Imports outpacing exports by 3:1

Jamaica’s trade deficit grew by US$344.5 million as total spending on imports declined, while earnings from exports increased in January 2021 relative to the similar period in 2020.

The January 2021 International Merchandise Trade Bulletin showed that imports outpacing exports by 3:1, given that imports cost the country US$461.7 million while exports earned US$117.2 million. The International Merchandise Trade Bulletin for January 2021 showed that imports for the first month of 2021 were valued at US$461.7 million.

This represents a decline of 12.1 per cent when compared to the same period in 2020. This decline was largely attributable to lower imports of Consumer Goods and Transport Equipment which fell by 23.0 per cent and 33.4 per cent, respectively.

Earnings from total exports increased by 16.7 per cent

The International Merchandise Trade Bulletin, which was released yesterday by the Statistical Institute of Jamaica showed that total exports for the review period were valued at US$117.2 million, relative to January 2020. Earnings from total exports increased by 16.7 per cent.

This increase was mainly influenced by an increase in the exports of alumina and Beverages & Tobacco, which rose by 57.8 per cent and 32.4 per cent, respectively. During the review period, Jamaica imported US$321.3 million worth of goods from the United States, Brazil, China, Nigeria, and Japan.

These were the top five import partners, accounting for 69.6 per cent of the imports in January 2021. Imports from these five countries declined during the period by 7.0 per cent, when compared to US$345.5 million in January 2020.

This was due largely to the reduction in imports of crude oil from the US. The top five destinations for Jamaica’s exports were the US, The Netherlands, Switzerland, Puerto Rico and the United Kingdom. Exports to these countries increased by 49.2 per cent to US$91.8 million.

Key trading blocs

There was a decline in imports from the key trading blocs. Imports from the United States-Mexico, Canada Agreement (USMCA) – formerly NAFTA were valued at US$197.1 million, the European Union- (less UK) were valued at US$24.6 million and CARICOM at US$19.1 million.

Exports to the USMCA fell to US$68.2 million. Exports to the EU however, rose in January 2021 to US$12.4 million due to increased shipments of alumina, while exports to CARICOM rose to US$6.8 million.