- Jamaica imports all of its oil, so when oil prices start to rise dramatically, such as during the 1970s or last year, the country experiences surging inflation.
- When the world economy slows, as it has in 2008-2009, tourism often drops dramatically. One of the principal industries for Jamaica is tourism, so when fewer people visit the country, unemployment rises and incomes fall.
- Jamaica has very high levels of debt from the massive borrowing that occurred during the 1970s and 1980s. This high debt service has caused Jamaica to receive negative credit ratings from the major credit reporting agencies, making it harder to borrow money at low interest rates.
- Violent crime is a major cause of the economic problems in Jamaica. While it is mainly in urban areas, it has been spreading over the last several years. This causes reluctance by foreign investors who may want to invest in the country.
- In the Caribbean, Jamaica has one of the highest corruption rates. Only Haiti, the Dominican Republic and Guyana rank lower. The corruption within the country has become so bad that law enforcement has become ineffective, causing many people to lose faith in the legal system.
Dependence on Oil
High Dependence on Tourism
High Debt Levels
Violent Crime
Corruption
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