The economy of Jamaica is primarily agricultural, but gains in mining, manufacturing, and tourism have diversified the economy. Annual budget figures for 1990-1991 showed about $600 million in revenues and $736 million in expenditures. In 1999 Jamaica’s gross domestic product (GDP) was $6.89 billion, or about $2,650 per capita. In 1999, 6.5 billion kwh of electricity was produced.

Jamaica's economy is mixed but increasingly based on services, notably tourism and finance. Since independence in 1962, Jamaica has developed markedly but unevenly. The government controls some key industries, but there are many foreign-owned companies, especially those controlling exports (bauxite and aluminum) and tourism, which are Jamaica's main sources of foreign exchange. Mining and manufacturing became increasingly important to the economy in the latter part of the 20th century; however, the mining sector has been highly vulnerable to fluctuations in the world market for aluminum. The island experienced a protracted recession in the 1990s after aluminum prices declined and many U.S. manufacturers relocated off the island.

Key sectors in this island economy are bauxite (alumina and bauxite account for more than half of exports) and tourism. Since assuming office in 1992, Prime Minister PATTERSON has eliminated most price controls, streamlined tax schedules, and privatized government enterprises. Continued tight monetary and fiscal policies have helped slow inflation - although inflationary pressures are mounting - and stabilize the exchange rate, but have resulted in the slowdown of economic growth (moving from 1.5% in 1992 to 0.5% in 1995). In 1996, GDP showed negative growth (-1.4%) and remained negative through 1999. Serious problems include: high interest rates; increased foreign competition; the weak financial condition of business in general resulting in receiverships or closures and downsizings of companies; the shift in investment portfolios to non-productive, short-term high yield instruments; a pressured, sometimes sliding, exchange rate; a widening merchandise trade deficit; and a growing internal debt for government bailouts to various ailing sectors of the economy, particularly the financial sector. Depressed economic conditions in 1999-2000 led to increased civil unrest, including a mounting crime rate. Jamaica's medium-term prospects will depend upon encouraging investment in the productive sectors, maintaining a competitive exchange rate, stabilizing the labor environment, selling off reacquired firms, and implementing proper fiscal and monetary policies.