Jamaica economy contracts 4.1% in first quarter as mining and farming output falls

Jamaica's economy shrank by 4.1 per cent in the first quarter of 2026, according to the Statistical Institute of Jamaica (STATIN), which attributed the fall in real gross domestic product to weaker output in both the goods-producing and services sectors.

Goods-producing industries recorded the sharper contraction, down 7.3 per cent. Agriculture, forestry and fishing fell 18.3 per cent, mining and quarrying dropped 23.5 per cent, and construction slipped 1.4 per cent. Manufacturing was the only goods-producing segment to expand, growing 0.6 per cent. Within services, financial and insurance activities were the sole category to post a gain, rising 2.9 per cent.

Despite the year-on-year decline, STATIN said the economy grew 3.3 per cent on a seasonally adjusted basis when measured against the October–December 2025 quarter. Both goods-producing and services industries recorded quarterly growth over that period.

Labour market conditions also softened after months of record-low unemployment. STATIN's latest labour force survey for April 2026 placed the unemployment rate at 3.7 per cent. An estimated 55,000 Jamaicans were out of work that month, 5,000 more than a year earlier. Youth unemployment saw one of the steepest shifts, with joblessness among people aged 15 to 24 rising to 21,000 from 19,600.

On the Jamaica Stock Exchange, the main index advanced 2,102 points while the junior market index fell five points. Among the gainers were Caribbean Cream, 138 Student Living Jamaica variable preference shares, Margaritaville Turks, Eppley Limited 7.25% preference shares and QWI Investments. Decliners included Sagicor Real Estate Finance US dollar shares, Jamaica Stock Exchange, Jamaica Public Service 7%, Honey Bun and A.S. Bryden & Sons Holdings. Fifteen stocks traded firm.

At the close of foreign-exchange trading, banks and cambios sold the US dollar at an average J$158.51. The Canadian dollar was offered at J$111.50, the pound at J$209.20 and the euro at an average J$182.93.