Imports grew at a significantly slower pace than exports in the first nine months of 2006, but the value of government goods bought from abroad was more than triple the value of the products Jamaica sold to foreign countries.

The country's negative trade balance - the difference between the value of imports and exports - widened by 14 per cent to US$2.72 billion during the review period, compared to the US$2.39 billion recorded for January to September 2005.

According to the latest trade figures from the Statistical Institute of Jamaica (Statin), goods flowing into Jamaica, largely oil imports, grew by 19.5 per cent or US$689.1 million to US$4.22 billion. External sales which rose a healthy 31 per cent, or US$355 million, were valued at US$1.5 billion during January to September, Statin reported Monday. Domestic goods were US$1.48 billion of exports, while the US$24.3 million balance were re-exports.

That outturn generated an even wider imbalance in trade figures of US$2.72 billion in nominal terms, compared to the US$2.39 billion recorded January to September 2005. But, proportionally, the rate at which exports have been increasing has slimmed the gap between goods sold relative to imports.

Within the nine-month period, for every dollar Jamaica earned from exports, the country spent US$2.81 on imports (1:2.81); last year, the ratio was 1:3.09 in the matching period.

On track

In fact, Jamaica is on track to outpace its export performance last year, and at September was just US$31 million shy of the US$1.53 billion of exports recorded for the full 2005 year.

In the current period, the import category of 'Minerals and Fuels' accounted for US$1.36 billion of the countries spend in foreign markets, the majority of which would represent petroleum products.

"This was the most significant contributor to the increase in imports," said Statin of the minerals/fuel category.

In fact, energy experts in Jamaica already report that the country is likely to end 2006 with a new record oil import bill that tops US$1.5 billion, representing average spend of US$375 million per quarter.

At that level, the country's oil bill to September would have already eaten 75 per cent of foreign exchange earnings from goods exports.

Food was lowest on the list of imports at US$460.6 million, capital expenditure on machinery and transport equipment for industry and construction was second behind fuels at US$835.8 million, followed by manufactured goods US$517.9 billion.

Domestic goods traded abroad rose 31.4 per cent, most of which were traditional goods - including bauxite/alumina, sugar, banana which earned the country US$1.03 billion, an increase of US$134.4 million - while non-traditionals more than doubled to US$448.6 million.

lavern.clarke@gleanerjm.com