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How Do We Measure Economic Freedom?See page 475 for an explanation of the methodology

or visit theIndexWeb site at heritage.org/index.2013 data unless otherwise noted.Data compiled as of September 2014.

Quick Facts

Population:2.8 million

GDP (PPP):$25.2 billion

0.5% growth in 2013

5-year compound annual growth 0.7%

$9,048 per capita

Unemployment:15.0%

Inflation (CPI):9.4%FDI Inflow:$567.1 million

Public Debt:138.9% of GDP

Economic Freedom Score

0 20 40 60 80 100

Country Comparisons

Freedom Trend

Country

WorldAverage

RegionalAverage

FreeEconomies

2011 2012 2013 20152014

50

25 75

0 100Leastfree Mostfree

64

65

66

67

68

69

67.7

60.4

59.7

84.6

67.7

Jamaicas economic freedom score is 67.7, making its econo-

my the 48th freest in the 2015Index. Its score has increased

by 1.0 point since last year, reflecting gains in five of the 10

economic freedoms, including freedom from corruption, fis-

cal freedom, and the management of government spending,

that outweigh a decline in monetary freedom. Jamaica ranks

9th out of 29 countries in the South and Central America/

Caribbean region.

Action to correct terms of trade issues and poor fiscal policy

has helped Jamaica to improve its overall economic freedom

score over the past five years. Since 2011, economic freedom

on the island has improved by 2.0 points, led by advances in

five of the 10 economic freedoms including freedom from cor-

ruption, the management of government spending, and fiscal

freedom. In the 2015Index, Jamaica has achieved its highest

economic freedom score ever.

However, the foundations of economic freedom in Jamaicaare still weak. Corruption is common, and the rule of law is

weakly enforced. Violence related to the drug trade has been

prevalent. Jamaica scores only about average on trade and

financial freedom, a serious problem for an island nation

dependent on imports for basic goods and fuel.

BACKGROUND: Prime Minister Portia Simpson-Millers Peo-

ples National Party was re-elected in December 2011 with a

large parliamentary majority. Simpson-Miller has maintained

market-friendly policies, but high interest rates and govern-

ment debt burden the economy. A $1.27 billion standby agree-

ment with the International Monetary Fund signed in 2010

required a commitment to major fiscal reforms that have

been slow to materialize. An extended IMF agreement was

approved in 2013. Most foreign exchange comes from remit-

tances, tourism, and bauxite production, all of which declined

sharply during the 2009 recession and have not recovered.

Unemployment remains high, particularly in the formal sec-

tor. Services account for more than 60 percent of GDP. Jamai-

ca is a member of the Venezuela-led Petrocaribe oil alliance.

World Rank:48 Regional Rank:9

JAMAICA

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2015Index of Economic Freedom

Property Rights

Freedom fromCorruption

Fiscal Freedom

GovernmentSpending

Business Freedom

Labor Freedom

Monetary Freedom

Trade Freedom

Investment Freedom

Financial Freedom

Business Freedom

Labor Freedom

Monetary Freedom

REGULATORY

EFFICIENCY

OPEN

MARKETS

Trade Freedom

Investment Freedom

Financial Freedom

GOVERNMENT

SIZE

Fiscal Freedom

Government Spending

RULE OF

LAW

Property Rights

Freedom from Corruption

0 20 40 60 80 100

0 20 40 60 80 100

0 20 40 60 80 100

0 20 40 60 80 100

Country World Average Rank Change1Year

Score

RULE OF LAW GOVERNMENT

SIZE

REGULATORY

EFFICIENCY

OPEN MARKETS

70th

83rd

67th

76th

20th

36th

138th

104th

13th

70th

Long-Term Score Change (since 1995)

THE TEN ECONOMIC FREEDOMS

Jamaicans see corruption as a root cause of their high crime rate. The government has yet tosend a strong signal against corruption. In May 2014, a license to a Hong Kongbased companyfor a major power project was revoked amid allegations of improper handling of the tenderprocess. The inefficient legal system weakens property rights and the rule of law.

With no minimum capital required, the business start-up process takes only two procedures.However, completing licensing requirements continues to be time-consuming, taking overfour months on average. Inefficiencies in the labor market continue to cause chronically highunemployment and underemployment. Most prices are set by the market, but the governmentregulates the prices of several goods and services.

Jamaicas average tariff rate is 7.5 percent. Tariffs are an important source of government rev-enue. Some imports require a license. The government does not automatically screen foreigninvestment. The banking sector is diversified, providing a wide range of financial services.Incorporating new provisions related to the evolving financial system, the Banking Services

Act was approved in June 2014.

Jamaicas top individual income tax rate is 25 percent, and its corporate tax rate is down to 25percent from 33.3 percent. Other taxes include a property transfer tax and a general consump-tion tax. Overall tax revenue equals 24.4 percent of domestic income. Government expendi-tures equal 29.9 percent of domestic production, and public debt is equivalent to 139 percentof gross domestic product.

JAMAICA(continued)