Lavern Clarke, Business Editor

Jamaica's foreign trade was at its most vibrant in December, a month in which the country profited from its own waste and energy exports to record a surplus of US$39.4 million on its current account, according to central bank reports.

The sunset on 2006 was a stark reversal from the December 2005 period when the current account was in deficit of US$22.9 million.

Strong growth in exports

"This improved performance," says the Bank of Jamaica in its release of provisional data for the 2006 Balance of Payments, "stemmed from strong growth in exports reflecting respective expansions of US$23.4 million (64.8 per cent) and US$12.4 million (14.6 per cent) in earnings from non-traditional exports - including waste and scrap metals, and ethanol - and alumina exports."

December's outturn helped to roll back a portion of the growing trade imbalance, but at the end of calendar 2006, the deficit was still larger by US$18 million year-on-year, ending at US$1.1 billion, according to central bank figures

Imports for 2006 topped US$5 billion, while exports had a stellar year, growing by 27 per cent to US$2.1 billion, the 19 per cent growth in imports pushed the trade gap wider by more than US$360 million to US$2.9 billion.

The import bill was largely for oil, chemicals and capital equipment.

STATIN FIGURES VARY

The Statistical Institute of Jamaica (STATIN), however, reported an even wider trade gap than the BoJ, saying in its external trade bulletin that goods imports topped US$5.6 billion for the calendar year, a 19 per cent climb on 2005.

Statin, the premier agency for trade data, also reported a more than 29 per cent climb in exports to US$1.98 billion, and a widening of the trade gap by 14 per cent to US$3.7 billion.

As is customary on the central bank's BOP accounts, big-ticket growth areas were 'travel' receipts, which includes foreign exchange earnings from tourism, on the services accounts - up by US$318 million to US$1.61 billion - and 'private current transfers', which captures remittances, at just under US$1.6 billion.

The narrow US$17 million gap notwithstanding, the figures show tourism reclaiming pole position as the country's premier foreign exchange earner having pulled in US$1.3 billion versus $1.4 billion for private transfers/remittances in calendar 2005.

"The higher surplus on the services account was influenced by respective increases of 17.7 per cent and 13.5 per cent in cruise passenger and stopover arrivals. This was supported by an average increase of 8.5 per cent in the estimated daily expenditure per stopover visitor," the central bank said. "An expansion of 9.2 per cent in gross private remittance inflows was responsible for the growth in current transfers."

lavern.clarke@gleanerjm.com

'Imports for 2006 topped US$5 billion, while exports had a stellar year, growing by 27 per cent to US$2.1 billion.'

BOJ Balance of Payments

Jan-Dec 2006 (US$m)

Current account-1,096.9-18

Exports (f.o.b.)2117.3 +453

Imports (f.o.b.)5062.2+817

Trade balance-2,944.9-364

Services balance802.1 +202

Travel receipts1,613.4 +318

Private current transfers1,596.4 +155

(Figures provisional)

Statin External Trade

Jan-Dec 2006 (US$m)

Imports5,650.4 +911

Exports1,983.5+452

Trade Balance-3,666.9-459