A dramatic rise in the oil bill alongside flat tourism inflows caused Jamaica’s current account deficit to more than double last year.
The trade gap with overseas partners also yawned wider at the end of 2011, with imports of goods valued at US$5.9 billion outpacing goods exports of US$1.7 billion by 256 per cent or US$4.26 billion.
Balance of payments (BOP) data released by the Bank of Jamaica (BOJ) indicate that the current account deficit worsened to US$2.07 billion, compared to US$934 million in 2010.
“In particular, mineral fuel imports expanded by US$856.3 million, partly reflecting a 19.6 per cent increase in the average price of oil for the period,” said the BOJ in its December 2011 BOP report.
The spike in the oil bill also wiped out gains in the bauxite sector.
The services sector, which includes transport and travel, was hurt by increased sea freight charges amid narrow movement in inflows from tourism, which inched up 1.3 per cent to US$1.8 billion.
Some positive signs
Private remittances also recovered slightly by US$106 million to US$1.92 billion, while total remittances were reported at US$2.04 billion.
Improved earnings from crude materials