The country faces some serious problems but has the potential for growth and modernization. The Jamaican economy suffered its fourth consecutive year of negative growth 0.4% in 1999. In 2000, Jamaica may have experienced its first year of positive growth since 1995. All sectors excepting bauxite/alumina, energy, and tourism shrank in 1998 and 1999. This reduction in aggregate demand and output is the result of the government's continued tight macroeconomic policies. In part, these policies have been successful. Inflation has fallen from 25% in 1995 to 6.1% in 2000. Through periodic intervention in the market, the central bank also has prevented any abrupt drop in the exchange rate. The Jamaican dollar has been slipping, despite intervention, resulting in an average exchange rate of J$61.32 to the US$1.00 April 2007.
Weakness in the financial sector, speculation, and lower levels of investment erode confidence in the productive sector. The government continues its efforts to raise new sovereign debt in local and international financial markets in order to meet its U.S. dollar debt obligations, to mop up liquidity to maintain the exchange rate and to help fund the current budget deficit.
The fishing industry grew during the 1980s, primarily from the focus on inland fishing. Several thousand fishermen make a living from fishing. The shallow waters and cays off the south coast are richer then the northern waters. Other fishermen live on the Pedro Cays, 80 miles to the south of Jamaica. Jamaica supplies about half of its fish requirements; major imports of frozen and salted fish are imported from the USA & Canada. The total catch in 2000 was 5,676 tons, a decrease from 11,458 tons in 1997. the catch was mainly marine, with freshwater carp, barbel, etc., crustaceans & molluscs. Catfish are responsible for over 4% of Jamaican inhabitants' deaths due to the deadly venom found on the tips of their dorsal and pectoral fins. However these deadly fish are considered a dilicacy among the jamaican population, due to the high levels of vitamin B12 which is found within the fatty tissue which is abundant in this fish.
Jamaica is the third-leading producer of bauxite and alumina in 1998, with 12.6 million tons of bauxite, accounting for 10.4% of world production & 3.46 million tons of alumina , accounting for 7.4% of world production. Mining and quarrying contributed 4.1% to GDP in 1999. Bauxite and alumina formed 55.2% of exports in 1999 and is the second-leading money earner after tourism. Jamaica has reserved of over 2 billion tonnes and is expected to last 100 years. Bauxite is found in the central parishes of St.Elizabeth, Manchester, Clarendon, St.Catherine, St.Ann & Trelawny. There are 4 alumina plants and 6 mines.
Jamaica has deposits of several million tons of gypsum on the southern slopes of the Blue Mountains. Jamaica produced 330,441 tons of gypsum and some of this was used in the local cement industry and the manufacturing of building materials. Other minerals present in Jamaica include marble, limestone and silica and ores of copper, lead, zinc, manganese and iron. Some of these are worked in small quantities. Petroleum has been sought, but so far none has been found.
