Economics

In the News

Diversifying Jamaica’s economy in the post-pandemic world

Geoff Riley

13th August 2021

I enjoyed reading this piece in the Oxford Business Review on barriers to growth and development in the Jamaican economy.

It is an excellent mini case study for Edexcel Theme 4 macro.

Jamaica is heavily dependent on tourism (the sector contributes over 30% of their GDP) and also on the US economy for their economic strength. Inevitably, the pandemic has wreaked havoc on an economy already struggling to overcome a number of structural supply and demand-side issues.

One example are restrictive trade agreements including those governing all-inclusive tourist packages are holding back their farm sector and contributing to very high import dependency.

Jamaica has one the lowest economic growth rate of developing countries. Persistently low wages contribute to a brain drain of younger workers.

Many are critical of the conditionality applied by the IMF when agreeing to emergency loans to help cover their very large fiscal and external trade deficits.

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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