THE BALANCE OF PAYMENTS

THE BALANCE OF PAYMENTS Preliminary QUARTERLY REPORT December 215 International Accounts Unit Economic Information & Publications Department RESEARCH AND ECONOMIC PROGRAMMING DIVISION 1

This page was intentionally left blank 2

THE BALANCE OF PAYMENTS Preliminary QUARTERLY REPORT December 215 International Accounts Unit Economic Information & Publications Department RESEARCH AND ECONOMIC PROGRAMMING DIVISION BANK OF JAMAICA P.O. BOX 621 Kingston, Jamaica I S S N 7 9 9 3 2 9 3

Copyright 216 Bank of Jamaica Nethersole Place P.O. Box 621 Kingston, Jamaica, W.I. All rights reserved The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The Bank of Jamaica encourages dissemination of its work and will normally grant permission promptly to reproduce portions of the work. For permission to photocopy or reprint any part of this work, please send a request to Economic Information and Publications Department, Bank of Jamaica, Nethersole Place, P.O. Box 621, Kingston, Jamaica, Telephone: (876) 922-75-9, Fax: (876) 967-4265, Email: library@boj.org.jm. ISSN 799-3293 Printed in Jamaica

TABLE OF CONTENTS Page Balance of Payments Summary October to December 215 3 January to December 215 5 April to December FY 215/16 7 Quarter Review Current Account 11 Capital Account 13 Financial Account 14 Glossary (BPM6) 15 Appendix: Historical Balance of Payments Tables 18 Comparison of BOP Formats 22 z 1

Table 1: Review Quarter Balance of Payments (US$MN) 214:Q4 215:Q4 Oct-Dec Oct-Dec/ Change Current Account Balance -367.6-72.9 294.7 Credits 1,79.6 1,777.7-12.9 Debits 2,158.2 1,85.6-37.6 Goods & Services -855.4-617.5 237.8 Exports 1,44.6 1,6.8-37.8 Imports 1,9. 1,624.3-275.7 Goods -988.7-761.1 227.5 Exports 333.5 293.6-39.9 Imports 1,322.2 1,54.7-267.4 Services 133.3 143.6 1.3 Exports 711.1 713.2 2.1 Imports 577.9 569.6-8.3 Primary Income -12.3-52. 5.3 Credits 95.5 111.3 15.7 Debits 197.9 163.2-34.6 Secondary Income 59.1 596.6 6.6 Credits 65.4 659.7 9.3 Debits 6.3 63. 2.7 Capital Account 5.5 5. -.6 Credits 5.5 5. -.6 Debits... Net lending (+) / net borrowing (-) (balance from current and capital account) -362.1-67.9 294.2 Financial Account Net lending (+) / net borrowing (-) (balance from financial account) -18.9-132.1-23.2 Direct Investment -139.3-177.4-38.1 Net acquisition of financial assets.4.9.4 Net incurrence of liabilities 139.7 178.2 38.5 Portfolio Investments 145.4 16.1-129.4 Net acquisition of financial assets -76.1-75. 1.1 Net incurrence of liabilities -221.5-91.1 13.4 Financial derivatives -1.6-1.2.4 Net acquisition of financial assets -12.4-1.3 11.1 Net incurrence of liabilities -1.9 -.1 1.7 Other Investments 127.8 6.7-121.2 Net acquisition of financial assets 11. 124.3 23.3 Net incurrence of liabilities -26.8 117.7 144.5 Reserve Assets -241.4 23.6 Net Errors and Omissions 253.1-64.2 1/ Provisional International Accounts Unit Economic Information & Publications Dept. April 216 2

US$ Mn I. BALANCE OF PAYMENTS SUMMARY October-December 215 Jamaica recorded a current account deficit of US$72.9 million (or.5 per cent of GDP) for the October to December 215 quarter, representing a US$294.7 million improvement relative to the corresponding period in 214 (Figure 1). It also represents the most favourable current account balance Figure 1: Current Account (Oct-Dec) -1-72.9-2 -3-4 -416.1-363.6-5 -484.2-447.6-428.3-484.6-6 -7-664.2 28 29 21 211 212 213 214 215 for a December quarter since 1994. The outturn for the review quarter represents a return to the upward trend since 211 after a brief decline in 213 (Figure 1). The improved current account for the review period stemmed from all sub-accounts. In particular, the goods, primary income, services and secondary income sub-accounts improved by US$227.5 million, US$5.3 million, US$1.3 million, and US$6.6 million, respectively (Table 1). Goods and services imports decreased mainly as a result of lower fuel prices, and outweighed lower exports. The balance on the capital account fell by US$.6 million, reflecting a surplus of US$5. million in December 215, down from a surplus of US$5.5 million in the previous corresponding quarter. This outturn combined with the balance on the current account returned a net borrowing balance of US$67.9 million, a decrease in borrowing of US$294.2 million relative to the December 214 quarter. There was a net borrowing balance on the financial account of US$132.1 million for the review quarter. This was mainly comprised of net direct investment inflows of US$177.4 million (Table 1). Financial inflows were therefore sufficient for financing the net borrowing balance on the current and capital accounts. As a result, gross reserves increased by US$23.6 million over the quarter. 3

Table 2: Review Calendar Year Balance of Payments (US$MN) 214 215 1/ Jan-Dec Jan-Dec Change Current Account Balance -1128.2-326.2 82. Credits 7,127.3 7,69.4-57.9 Debits 8,255.4 7,395.6-859.8 Goods & Services -3,132.9-2,347.1 785.8 Exports 4,38. 4,24.3-13.6 Imports 7,44.9 6,551.5-889.4 Goods -3,759. -3,153.3 65.7 Exports 1,448.6 1,261.1-187.5 Imports 5,27.6 4,414.4-793.2 Services 626.1 86.1 18. Exports 2,859.4 2,943.2 83.9 Imports 2,233.2 2,137.1-96.2 Primary Income -286.5-312.3-25.8 Credits 296.7 295.2-1.5 Debits 583.2 67.6 24.4 Secondary Income 2,291.2 2,333.3 42.1 Credits 2,522.6 2,569.8 47.2 Debits 231.4 236.5 5.2 Capital Account 9.1 1466.7 1457.6 Credits 9.1 1,466.7 1,457.6 Debits... Net lending (+)/ net borrowing (-) (balance from current and capital account) -1,119.1 1,14.5 2,259.6 Financial Account Net lending (+) / net borrowing (-) (balance from -1,172.9 413. 1,585.9 Direct Investment -593.6-79.1-196.5 Net acquisition of financial assets -2.1 4.4 6.5 Net incurrence of liabilities 591.5 794.5 23. Portfolio Investments -465.9-1,291.4-825.5 Net acquisition of financial assets 316.3 58.7 192.4 Net incurrence of liabilities 782.2 1,8.1 1,17.9 Financial derivatives -178.1 26.4 24.5 Net acquisition of financial assets -221. 6.4 227.4 Net incurrence of liabilities -42.9-2. 22.9 Other Investments -591.5 2,27.9 2,619.4 Net acquisition of financial assets -315.5-141.7 173.8 Net incurrence of liabilities 276.1-2,169.5-2,445.6 Reserve Assets 656.3 44.2 Net Errors and Omissions -53.8-727.5 1/ Preliminary International Accounts Unit Economic Information & Publications Dept. April 216 4

US$ Mn US$ Mn US$ Mn January to December 215 The current account balance improved by US$82. million during the 215 calendar year to a deficit of US$326.2 million (or 2.4 per cent of GDP), relative to the 214 calendar year (Figure 2). This continues a trend of improvements in the current account since 211. The improved outturn for the review period emanated from all Figure 2: Current Account (Jan-Dec) -326.2-5 -1, -934.9-1,11.1-1,127.5-1,316. -1,5-1,378.6-1,913.8-2, -2,5 29 21 211 212 213 214 215 sub-accounts except primary income. The goods, services, and secondary income sub-accounts improved by US$65.7 million, US$18. million, and US$42.1 million, respectively. However, in contrast, the primary income sub-account deteriorated by US$25.8 million (Table 2). The goods trade deficit of US$3.15 billion reflected an improvement of US$65.7 million. This was underpinned by a US$793.2 million reduction in goods imports. The reduction in goods imports to US$4.41 billion was principally driven by decreases in mineral fuel and food imports of US$824.9 million and US$78.4 million, respectively (Figure 3). A notable offsetting impulse to the overall reduction in imports was an increase in the importation of machinery & transport equipment of US$66.6 million. Goods exports also declined by US$187.5 million to US$1.26 billion, mainly as a result of a decrease in mineral fuel and food exports of US$34.2 million and US$19.9 million, respectively (Figure 4). Figure 3: Change in Imports by SITC: Jan-Dec 2 1-78.4 35.4 66.6-1.7-7.4-3. -19.3-1 -2-3 -4-5 -6-7 -8-9 -824.9 Source: STATIN -12.3-6.3 Figure 4: Change in Exports by SITC: Jan-Dec -.1-2.8-1.6-5 -1-8.8-15 -2-19.9-19.8-17.3-25 -3-35 -34.2-4 Source: STATIN -5.6-3. 5

The balance on the services sub-account improved by US$18. million to US$86.1 million for the review period resulting primarily from gains in transportation, travel, and insurance & pension services of US$125.1 million, US$87.2 million, and US$18.5 million, respectively. However, the improvement was partially offset by a decline in other business services of US$24.3 million. There was an improvement of US$1.46 billion in the capital account from the surplus of US$9.1 million recorded in 214 to US$1.47 billion in 215, reflecting the discount received on the PetroCaribe debt repurchase. This outturn together with the balance on the current account yielded a net lending balance on the capital and current account of US$1.14 billion. The financial account recorded a net lending balance of US$413. million, which was mainly driven by transactions relating to the PetroCaribe debt repurchase, resulting in a net repayment of US$2.17 billion in other investment liabilities and a net take-up of US$1.8 billion in portfolio investment liabilities, primarily stemming from the issuing of two bonds in the September 215 quarter. This facilitated an increase in gross reserves of US$44.2 million. 6

US$ Mn US$ Mn US$ Mn April-December FY 215/16 The current account balance for the April to December 215/16 fiscal period improved by US$656.8 million to a deficit of US$352. million (or 2.6 per cent of GDP), relative to the previous corresponding period (Figure 5). This represents a continuation of the improvements observed in the last three -2-4 -6-8 -1, -1,2-1,4-1,6-1,8-2, Figure 5: Current Account (Apr-Dec) -363.6-352. -559.4-91.6-911.8-1,58.3-1,199.6-1,728.1 22/3 29/1 21/11 211/12 212/13 213/14 214/15 215/16 fiscal years. The improved outturn for the review period emanated from all sub-accounts. The goods, services, and secondary income sub-accounts improved by US$493.5 million, US$17.7 million, and US$53.8 million, respectively, while the primary income sub-account gained a marginal US$1.7 million (Table 3). For the goods sub-account, the deficit decreased to US$2.38 billion relative to the corresponding period in the previous fiscal year, in which a larger deficit of US$2.87 billion was recorded. Goods imports decreased by US$633.2 million to US$3.31 billion, primarily driven by decreases in mineral fuel and food imports of US$612.4 million and US$47.2 million, respectively (Figure 6). This was partially offset by an increase in machinery & transport equipment imports of US$58.4 million. Exports of goods decreased by US$139.7 million to US$924.7 million, primarily as a result of a decrease in exports of food by US$22.4 million and mineral fuel by US$2.1 million (Figure 7). Figure 6: Change in Imports by SITC: Apr-Dec Figure 7: Change in Exports by SITC: Apr-Dec 1-47.2 -.5-3.5-2.3-4.8 13.8 58.4-31.3-14.2 5-4.5 -.2-2.4.2-4.6-3.4-1 -2-5 -3-1 -4-5 -6-7 -612.4-15 -2-25 -22.4-16.4-2.1-13.2 Source: STATIN Source: STATIN 7

The balance on the services sub-account improved by US$17.7 million to US$57.1 million for the review period resulting primarily from gains in transportation services, travel, and insurance & pensions, of US$64.2 million, US$47.8 million, and US$32.4 million, respectively. However, the improvement was partially offset by a decline in other business services of US$13.2 million. There was an improvement of US$1.45 billion in the capital account, reflecting the discount received on the PetroCaribe debt repurchase. This outturn together with the balance on the current account yielded a net lending balance on the capital and current account of US$1.11 billion. The financial account recorded a net lending balance of US$537.4 million, which was mainly driven by transactions relating to the PetroCaribe debt repurchases, resulting in a net repayment of US$2.31 billion in other investment liabilities and a net take-up of US$1.66 billion in portfolio investment liabilities, primarily stemming from the issuance of two bonds in the September 215 quarter. This facilitated an increase in gross reserves of US$224.3 million. 8

Table 3: Fiscal Year to Date Balance of Payments (US$MN) 214/15 215/16 Apr-Dec Apr-Dec/ Change Current Account Balance -18.8-352. 656.8 Credits 5,287.3 5,255.4-31.9 Debits 6,296.1 5,67.4-688.7 Goods & Services -2,475.2-1,873.9 61.3 Exports 3,145.3 3,46.9-98.4 Imports 5,62.5 4,92.8-699.7 Goods -2,874.5-2,381. 493.5 Exports 1,64.3 924.7-139.7 Imports 3,938.9 3,35.7-633.2 Services 399.3 57.1 17.7 Credits 2,81. 2,122.3 41.3 Debits 1,681.6 1,615.2-66.5 Primary Income -268.9-267.2 1.7 Credits 228.3 24.8 12.4 Debits 497.3 58. 1.7 Secondary Income 1,735.3 1,789.2 53.8 Credits 1,913.7 1,967.7 54.1 Debits 178.3 178.6.2 Capital Account 8.5 1457.4 1449. Credits 8.5 1,457.4 1,449. Debits... Net lending (+)/ net borrowing (-) (balance from current and capital account) -1,.3 1,15.5 2,15.8 Financial Account Net lending (+) / net borrowing (-) (balance from -673.2 537.4 1,21.5 Direct Investment -466.3-595.7-129.4 Net acquisition of financial assets -2.4 5.4 7.8 Net incurrence of liabilities 463.9 61. 137.1 Portfolio Investments -469.2-1,557.7-1,88.5 Net acquisition of financial assets 252.1 15.7-146.4 Net incurrence of liabilities 721.3 1,663.4 942.1 Financial derivatives -116.9 28.4 145.3 Net acquisition of financial assets -154. 18.5 172.5 Net incurrence of liabilities -37.1-9.9 27.2 Other Investments -46.1 2,437.9 2,484. Net acquisition of financial assets 74.7 127.9 53.2 Net incurrence of liabilities 12.9-2,31. -2,43.9 Reserve Assets 425.3 224.3 Net Errors and Omissions 327.1-568.1 1/ Preliminary International Accounts Unit Economic Information & Publications Dept. April 216 9

This page was intentionally left blank 1

US$ Mn % of GDP II. QUARTER REVIEW Current Account For the October to December 215 quarter, there was a current account deficit of US$72.9 million (or.5 per cent of GDP) (Figure 8), representing a US$294.7 million (or 8.2 per cent) improvement relative to the corresponding period in 214. It also represents the most favourable current account balance for a December quarter since 1994 (Figure 1). The outturn for the review quarter represents a return to the upward trend in the current account balance for December quarters since 211 after a decline in 214. The improved outturn for the review period emanated from all sub-accounts. Specifically, the goods, primary income, services, and secondary income accounts improved by US$227.5 million, US$5.3 million, US$1.3 million, and US$6.6 million, respectively (Table 1). Figure 9: Evolution of Key Current Account Components 15 1 5-5 -1-15 -2-25 Goods Exports Goods Imports Services Exports Services Imports Figure 8: Contribution to Current Account Balance by Component 8 6 4 2.2-1.2-2. -3.6-2.6-1.7-1.6 -.8 -.8-1.2 -.5-2.2-2.2-2.4-2.7-2 -3.4-4 -6-8 -1 Goods Services Primary income Secondary income Current account The improvement in the goods account was primarily due to a decline in imports which was partially offset by a decline in exports. The decline in imports of US$267.4 million (or 2.2 per cent) was mostly reflective of reductions in mineral fuel imports and imports of miscellaneous manufacturing goods of US$21.2 million and US$33.3 million, respectively (Figure 1). However, this was partially offset by a US$6.6 million increase in machinery & transport equipment imports. The decline of US$39.9 million (or 12. per cent) in exports was largely driven by reductions in food, beverage & tobacco, and chemicals exports of US$11.1 million, US$8.5 million and US$8.2 million, respectively (Figure 11). This was partially offset by an increase of US$4.6 million in exports of machinery & transport equipment. Mineral fuel prices were, on average, 49.4 per cent lower compared 11

US$ Mn US$ Mn to the corresponding period in 214. This largely contributed to the reduction in the value of mineral fuel imports. Figure 1: Change in Imports by SITC: Oct-Dec Figure 11: Change in Exports by SITC: Oct-Dec 5 6 4.6-5 -2.9 -.5-4.5 1.7-26. -.6 6.6-33.3-17.3 4 2.3 -.1 3. -1.3-1.3-1 -2-4 -15-2 -25-21.2-6 -8-1 -12-11.1-8.5-3.9-8.2 Source: STATIN Source: STATIN The improvement in the balance on the services sub-account resulted primarily from an improvement of US$19.5 million (or.2 per cent) and US$1.6 million (or 11.9 per cent) in net transport, and insurance & pension services flows, respectively. Transport outflows declined due to lower freight charges, stemming from lower fuel prices and correspondingly lower fuel imports. Also, travel receipts were boosted by increases in average expenditure per visitor and stop-over arrivals (Figure 12a). However, growth rates in travel receipts have moderated since the December 214 quarter (Figure 12b). These increases were partially offset by a decline of US$7.2 million (or 2.9 per cent) in construction services. 8 6 4 2 18 16 14 12 1 8 6 4 2-2 -4 619-1.7 55 488 458 -.5 Figure 12a: Tourist Expenditure (US$Mn) -2.6 69 6.6 52 475 488 3.6 7.8 63 9.6 541 521 563 15.3 8.1 681 Figure 12b: Tourist Expenditure (Growth Rate q-o-q %) Source: Jamaica Tourist Board 4.8 567 553 578 6.2 2.7 The primary income account balance improved by US$5.3 million (or 49.2 per cent) during the review period to a deficit of US$52. million (Figure 12). Net compensation of employees was US$5.1 million for the quarter, an improvement of US$15.5 million (or 45. per cent) relative to the December 214 quarter. 12

The secondary income account recorded a balance of US$596.6 million, an increase of US$6.6 million (or 1.1 per cent), principally originating from higher net private transfers of US$15.7 million (or 3.2 per cent) for the quarter. Official transfers also declined by US$9.1 million (or 17.2 per cent) over the same period. Non-fuel Current Account The current account excluding fuel trade recorded a surplus of US$114.5 million (or.8 per cent of GDP), representing an improvement of US$96.8 million relative to the December 214 quarter (Figure 13). Excluding mineral fuel exports and imports, merchandise trade improved by US$29.5 million to a deficit of US$573.8 million (or 4.2 per cent of GDP) as a result of improvements in all other sub-accounts. 8 6 4 2-2 -4-6 -8 Figure 13: Non-Fuel Current Account (US$Mn) 589.6 44.5 47.5 26.3 1.4 61.3 17.7 114.5-379. -187.3-545.9-385.3-554.5-56.7-63.3-573.8 Fuel Imports Non-Fuel Merchandise Trade Non-Fuel Current Account Fuel Trade Balance The improvement in the non-fuel current account occurred in spite of a decline in non-fuel merchandise exports to US$274.6 million (or 2. per cent of GDP), representing a US$36.7 million decline relative to the December 214 quarter. This was, however, offset by a larger decline in non-fuel merchandise imports of US$66.2 million to US$848.4 million (or 6.2 per cent of GDP). Capital Account The balance on the capital account deteriorated by US$.6 million in the December 215 quarter, compared to a surplus of US$5.5 million in the previous corresponding quarter. This outturn combined with the balance on the current account returned a net borrowing position of US$67.9 million. 13

Financial Account There was a net borrowing balance in the financial account of US$132.1 million for the review quarter. Net inflows to the financial account (17.1 per cent of GDP) were sufficient for financing the current account deficit. There were net portfolio investment outflows of US$16.1 million for the December 215 quarter; while net direct investment was US$177.4 million compared to US$139.3 million in December 214. 3 25 2 15 1 5 Figure 14: Financing the Current Account, Ratio of FDI/Current Account Deficit in % (no value means Current Account surplus) 65.5 42.4 19.3 18.2 41.6 76. 51.6 31.7 16.8 61.1 FDI/Current Account Deficit 41.1 38. 154.3 149.5 244.5 FDI continues to be an important long term source of financing for the current account for Jamaica. For the December 215 quarter, the ratio of net FDI inflows to the current account deficit was 244.5 per cent (Figure 14). Flows from official and private sources were sufficient for financing the net borrowing balance on the current and capital accounts. Consequently, gross reserves increased by US$23.6 million during the quarter. 14

Glossary (BPM6) The Sixth Edition of the Balance of Payments Manual (BPM6) format was first published in the December 212 quarterly edition of this Report. Six major changes in BPM6 and definitions of key terminologies used in this Report are highlighted below. Six Major Changes in BPM6 1. The Goods sub-account and Services sub-account are now combined and referred to as the Goods and Services sub-account. 2. The Income sub-account is now referred to as Primary Income. 3. The Current Transfers sub-account is now referred to as Secondary Income. 4. The Financial Account is no longer grouped with the Capital Account. 5. The balance from the Current and the Capital account is referred to as Net Lending or Net Borrowing, which is explained by details in the Financial Account. 6. The use of debits and credits for the Financial Account is replaced by Net acquisition of financial assets and the Net incurrence of liabilities. Key Terminologies and Concepts Balance of Payments The balance of payments (BOP) is a summary of economic activities between the residents of a country and the rest of the world during a given period, usually one year. The BOP is divided into two main categories according to the broad nature of the transactions. These categories are the Current Account and the Capital & Financial Account. The sum of the balances on the Current and Capital accounts represents the Net Lending (surplus) or Net Borrowing (deficit) by the economy with the rest of the world. This is conceptually equal to the net balance of the Financial Account. In other words, the Financial Account measures how the Net Lending to or Net Borrowing from non-residents is financed. 15

1. Current Account The current account includes all transactions (excluding those recorded in the capital and financial account) between resident and non-resident entities that involve economic value. This account is sub-divided into: a. Goods and Services b. Primary Income, and c. Secondary Income a. The Goods and Services account covers merchandise trade, travel, transportation and other services. i. Merchandise Trade records the value of exports and imports, of tangible goods, including those of the free-zones and goods procured in ports by international carriers. ii. Travel covers goods and services acquired from an economy by non-resident travellers for business and personal purposes during their visits (of less than one year). Expenditures made by seasonal workers (e.g. Jamaican farm workers) and those for educational and health-related purposes made by students and medical patients are recorded in this sub-account. iii. Transportation covers all transportation services (sea, air and land), bought and sold, that involve the carriage of passengers, movement of goods (freight), charter of carriers with crew and other supporting services. iv. Other Services consist of the purchase and sale of: communication services, construction services, insurance services, financial services, computer and information services, royalties and licences fees and government services. b. Primary Income represents the return that accrues to institutional units for their contribution to the production process or for the provision of financial assets and renting natural resources to other institutional units. It encompasses the compensation of employees, that is, salaries, wages and benefits of seasonal and other non-resident workers. In addition, it includes investment income that consists of dividends, profits, reinvested earnings, interest on debt and income on portfolio investment. c. Secondary Income shows current transfers between residents and non-residents. It covers transactions such as taxes on income, workers' remittances, and premiums and claims on non-life insurance. 16

2. Capital Account The Capital Account covers: (i) Capital Transfers include the transfer of ownership of fixed assets, the transfer of funds linked to disposal/acquisition of fixed assets and the cancellation of debt by creditors. (ii) Acquisition/disposal of non-produced, non-financial assets mainly involves intangibles such as patents and leases. It also includes purchases and sales of land by foreign embassies. 3. Financial Account The Financial Account records transactions that directly affect the wealth and debt of the country and records transactions that involve financial assets and liabilities between residents and non-residents. This account covers: (i) Direct investment is the category of international investment in which a resident entity in one economy acquires or disposes of 1 per cent or more of the ordinary shares or voting power of an enterprise located in another economy and has an effective voice in management. (ii) Portfolio Investment covers transactions in equity securities and debt securities. With respect to equity, a portfolio investment would imply less than 1 per cent ownership of the voting power of an enterprise located in another country. Debt securities include bonds and notes, money market instruments and financial derivatives. (iii) Financial Derivatives (other than reserves) covers transactions of forward-type contracts and options traded in financial markets used to transfer risks linked to another specific financial instrument or indicator or commodity. (iv) Other investment is a residual category that includes all financial transactions not covered in Direct Investment, Portfolio Investment or Reserve Assets. It includes: (i) Loans to finance trade (ii) Insurance, pension and standardized guarantee schemes; (iii) trade credits and advances; and (iv) Other accounts receivable/payable. (v) Reserve Assets represent the foreign exchange which the country has available for financing an imbalance of payments with the rest of the world. 17

Appendix A: Historical Balance of Payments Tables Evolution of BOP Components (% of GDP) BALANCE OF PAYMENTS OF JAMAICA: SUMMARY 213Q4 214Q1 FY 213/14 214Q2 214Q3 214Q4 215Q1 FY 214/15 215Q2 215Q3 215Q4 Current account -3.4 -.8-8.1-2.2-2.4-2.7.2-7.1 -.8-1.2 -.5 Goods and services -7.2-4.7-22.6-5.7-6. -6.2-3.4-21.3-4.4-4.8-4.5 Goods -7.9-6.3-26.8-6.8-6.8-7.1-5.6-26.4-6. -5.8-5.5 Exports 2.6 2.7 1.6 2.6 2.7 2.4 2.4 1.1 2.5 2.1 2.1 Imports 1.4 9. 37.4 9.4 9.6 9.6 8. 36.5 8.5 7.9 7.7 Services.7 1.6 4.3 1.1.8 1. 2.2 5. 1.6 1. 1. Transport -1.3-1.4-5. -1.2-1.2-1.2-1. -4.6-1.1-1. -1. Travel 3.1 4.2 13.6 3.6 3.3 3.6 4.6 15.2 3.8 3.5 3.6 Construction -.1 -.1 -.4 -.1 -.1 -.1 -.1 -.5 -.1 -.2 -.2 Insurance and pension services -.2 -.2 -.9 -.3 -.4 -.4 -.3-1.3 -.1 -.4 -.3 Financial services.. -.2. -.1 -.1 -.1 -.2 -.1 -.1 -.1 Charges for the use of intellectual property n.i.e. -.1 -.1 -.4 -.1 -.1 -.1 -.1 -.3 -.1 -.1 -.1 Telecommunications, computer, and information services.1.1.5.1.1..1.3.1.1. Other business services -.8-1. -3.2 -.9 -.8 -.9-1.1-3.7 -.9 -.8 -.9 Personal, cultural, and recreational services.1.1.5.1.1.1.1.5.1.1.1 Government goods and services n.i.e. -.1 -.1 -.2 -.1 -.1 -.1 -.1 -.2 -.1 -.1 -.1 Primary income -.6 -.1-1.6 -.6 -.6 -.7 -.3-2.3 -.9 -.7 -.4 o.w. Compensation of employees.2..4..1.2.1.5..1.4 o.w. Investment income -.8 -.2-2. -.6 -.8-1. -.4-2.8 -.9 -.8 -.7 Other Primary Income........... Secondary income 4.4 3.9 16. 4.1 4.2 4.3 3.9 16.5 4.4 4.3 4.3 General government.7.4 1.9.3.4.4.3 1.4.4.4.3 Financial corporations, nonfinancial corporations, households, and NPISHs 3.7 3.5 14.2 3.7 3.8 3.9 3.6 15. 4. 3.9 4. o.w. Personal transfers (Current transfers between resident and nonresident households) 3.4 3.3 13.2 3.5 3.5 3.6 3.4 14. 3.7 3.6 3.7 Other current transfers.3.2 1..2.3.3.2 1..2.3.3 Capital account.......1.1. 1.5. Capital transfers.......1.1. 1.5. A. Current & Capital Account Balance -3.4 -.8-8.1-2.2-2.4-2.6.3-7. -.8 9.3 -.5 Net lending (+) / net borrowing (-) (balance from current and capital account) Net errors and omissions (B minus A ) 1.7-2.7-4.3.1.4 1.8-1.2 1.2 -.1-3.6 -.5 B. Financial Account Balance -3.4 -.8-8.1-2.2-2.4-2.6.3-7. -.8 9.3 -.5 Net lending (+) / net borrowing (-) (balance from financial account) Direct investment -1.9 -.9-5.2-1.4-1. -1. -1.4-4.8-1.3-1.7-1.3 Portfolio investment -.5..1 1.1-5.5 1.1 1.9-1.5 2.2-13.6.1 Financial derivatives (other than reserves) and employee stock options. -.4.5 -.5 -.4.. -.9.2.. Other investment -.1-3.9-1. -1. -.2.9-3. -3.3 -.9 18.5. Reserve assets.7 1.6 2.3 -.2 5.1-1.7 1.6 4.6-1.1 2.6.2 18 I S S N 7 9 9 3 2 9 3

Recent Five Quarters Balance of Payments (US$MN) 214/15:Q3 214/15:Q4 215/16:Q1 215/16:Q2 215/16:Q3 Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Current Account Balance -367.6 25.8-117. -162. -72.9 Credits 1,79.6 1,814. 1,766. 1,711.7 1,777.7 Debits 2,158.2 1,788.2 1,883. 1,873.8 1,85.6 Goods & Services -855.4-473.2-6.9-655.5-617.5 Exports 1,44.6 1,157.4 1,56.7 983.4 1,6.8 Imports 1,9. 1,63.7 1,657.6 1,638.9 1,624.3 Goods -988.7-772.3-822.2-797.6-761.1 Exports 333.5 336.5 344.4 286.7 293.6 Imports 1,322.2 1,18.7 1,166.6 1,84.3 1,54.7 Services 133.3 299. 221.3 142.2 143.6 Exports 711.1 821. 712.3 696.7 713.2 Imports 577.9 521.9 491. 554.6 569.6 Primary Income -12.3-45.1-117.7-97.6-52. Credits 95.5 54.5 56.2 73.3 111.3 Debits 197.9 99.6 173.9 17.9 163.2 Secondary Income 59.1 544.1 61.5 591. 596.6 Credits 65.4 62.1 653.1 655. 659.7 Debits 6.3 58. 51.5 64. 63. Capital Account 5.5 9.3 2.8 1449.7 5. Credits 5.5 9.3 2.8 1,449.7 5. Debits..... Net lending (+) / net borrowing (-) (balance from current and capital account) -362.1 35. -114.2 1287.6-67.9 Financial Account Net lending (+) / net borrowing (-) (balance from financial account) -18.9-124.3-125. 794.5-132.1 Direct Investment -139.3-194.4-182.6-235.7-177.4 Net acquisition of financial assets.4-1. -2. 6.5.9 Net incurrence of liabilities 139.7 193.4 18.5 242.3 178.2 Portfolio Investments 145.4 266.3 32.6-1,876.3 16.1 Net acquisition of financial assets -76.1 43. 157.9 22.9-75. Net incurrence of liabilities -221.5 136.7-144.7 1,899.2-91.1 Financial derivatives -1.6-2. 28.8.8-1.2 Net acquisition of financial assets -12.4-12.2 21.1-1.3-1.3 Net incurrence of liabilities -1.9-1.1-7.7-2.1 -.1 Other Investments 127.8-41. -121.4 2,552.6 6.7 Net acquisition of financial assets 11. -269.5 111.6-18.1 124.3 Net incurrence of liabilities -26.8 14.5 233. -2,66.6 117.7 Reserve Assets -241.4 215.9-152.5 353.2 23.6 Net Errors and Omissions 253.1-159.4-1.8-493.1-64.2 Provisional International Accounts Unit Economic Information & Publications Dept. April 216 19

Full Fiscal Year Balance of Payments (US$MN) 214/15:Q1 214/15:Q2 214/15:Q3 214/15:Q4 214/15 Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Mar 1/ Current Account Balance -33.8-337.4-367.6 25.8-983. Credits 1,722.4 1,774.4 1,79.6 1,814. 7,11.3 Debits 2,26.2 2,111.7 2,158.2 1,788.2 8,84.3 Goods & Services -785.1-834.8-855.4-473.2-2,948.4 Exports 1,5.1 1,5.5 1,44.6 1,157.4 4,32.7 Imports 1,835.2 1,885.3 1,9. 1,63.7 7,251.1 Goods -939.8-946. -988.7-772.3-3,646.8 Exports 355.9 375. 333.5 336.5 1,4.8 Imports 1,295.7 1,321. 1,322.2 1,18.7 5,47.6 Services 154.8 111.3 133.3 299. 698.4 Exports 694.3 675.5 711.1 821. 2,91.9 Imports 539.5 564.2 577.9 521.9 2,23.6 Primary Income -8. -86.6-12.3-45.1-314. Credits 56.7 76. 95.5 54.5 282.8 Debits 136.8 162.6 197.9 99.6 596.8 Secondary Income 561.3 584. 59.1 544.1 2,279.4 Credits 615.5 647.8 65.4 62.1 2,515.7 Debits 54.2 63.8 6.3 58. 236.3 Capital Account 1.4 1.5 5.5 9.3 17.7 Credits 1.4 1.5 5.5 9.3 17.7 Debits..... Net lending (+) / net borrowing (-) (balance from current ARd capital account) -32.4-335.8-362.1 35. -965.3 Financial Account Net lending (+) / net borrowing (-) (balance from financial account) -283.4-28.8-18.9-124.3-797.5 Direct Investment -189. -138. -139.3-194.4-66.7 Net acquisition of financial assets -3.3.5.4-1. -3.4 Net incurrence of liabilities 185.6 138.6 139.7 193.4 657.4 Portfolio Investments 149.2-763.8 145.4 266.3-22.9 Net acquisition of financial assets 361.6-33.3-76.1 43. 655.1 Net incurrence of liabilities 212.3 73.5-221.5 136.7 858. Financial derivatives -66.5-48.8-1.6-2. -118.9 Net acquisition of financial assets -73.5-68. -12.4-12.2-166.1 Net incurrence of liabilities -7. -19.2-1.9-1.1-47.2 Other Investments -145.1-28.9 127.8-41. -456.2 Net acquisition of financial assets 17.2-196.4 11. -269.5-194.8 Net incurrence of liabilities 315.2-167.5-26.8 14.5 261.3 Reserves Assets -32.1 698.7-241.4 215.9 641.1 Net Errors and Omissions 18.9 55. 253.1-159.4 167.8 1/ Preliminary International Accounts Unit Economic Information & Publications Dept. April 216 2

Full Calendar Year Balance of Payments (US$MN) 215:Q1 215:Q2 215:Q3 215:Q4 215 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Dec Current Account Balance 25.8-117. -162. -72.9-326.2 Credits 1,814. 1,766. 1,711.7 1,777.7 7,69.4 Debits 1,788.2 1,883. 1,873.8 1,85.6 7,395.6 Goods & Services -473.2-6.9-655.5-617.5-2,347.1 Exports 1,157.4 1,56.7 983.4 1,6.8 4,24.3 Imports 1,63.7 1,657.6 1,638.9 1,624.3 6,551.5 Goods -772.3-822.2-797.6-761.1-3,153.3 Exports 336.5 344.4 286.7 293.6 1,261.1 Imports 1,18.7 1,166.6 1,84.3 1,54.7 4,414.4 Services 299. 221.3 142.2 143.6 86.1 Exports 821. 712.3 696.7 713.2 2,943.2 Imports 521.9 491. 554.6 569.6 2,137.1 Primary Income -45.1-117.7-97.6-52. -312.3 Credits 54.5 56.2 73.3 111.3 295.2 Debits 99.6 173.9 17.9 163.2 67.6 Secondary Income 544.1 61.5 591. 596.6 2,333.3 Credits 62.1 653.1 655. 659.7 2,569.8 Debits 58. 51.5 64. 63. 236.5 Capital Account 9.3 2.8 1449.7 5. 1466.7 Credits 9.3 2.8 1,449.7 5. 1,466.7 Debits..... Net lending (+) / net borrowing (-) (balance from current and capital account) 35. -114.2 1287.6-67.9 114.5 Financial Account Net lending (+) / net borrowing (-) (balance from financial account) -124.3-125. 794.5-132.1 413. Direct Investment -194.4-182.6-235.7-177.4-79.1 Net acquisition of financial assets -1. -2. 6.5.9 4.4 Net incurrence of liabilities 193.4 18.5 242.3 178.2 794.5 Portfolio Investments 266.3 32.6-1,876.3 16.1-1,291.4 Net acquisition of financial assets 43. 157.9 22.9-75. 58.7 Net incurrence of liabilities 136.7-144.7 1,899.2-91.1 1,8.1 Financial derivatives -2. 28.8.8-1.2 26.4 Net acquisition of financial assets -12.2 21.1-1.3-1.3 6.4 Net incurrence of liabilities -1.1-7.7-2.1 -.1-2. Other Investments -41. -121.4 2,552.6 6.7 2,27.9 Net acquisition of financial assets -269.5 111.6-18.1 124.3-141.7 Net incurrence of liabilities 14.5 233. -2,66.6 117.7-2,169.5 Reserves Assets 215.9-152.5 353.2 23.6 44.2 Net Errors and Omissions -159.4-1.8-493.1-64.2-727.5 Revised International Accounts Unit Economic Information & Publications Dept. April 216 21

Appendix B: Comparison of BOP Formats Old Terminology New Terminology Goods + Services = Goods & Services Current a/c + Capital a/c = Net lending (+) / Net borrowing (-) Balance of Payments (US$MN) Balance of Payments (US$MN) 215 215 Oct-Dec 1/ Oct-Dec 1/ Current Account Balance -72.9 Credits 1,777.7 1. Current Account -72.9 Debits 1,85.6 A. Goods -761.1 Goods & Services -617.5 Exports 293.6 Exports 1,6.8 Imports 154.7 Imports 1,624.3 Goods -761.1 B. Services 143.6 Exports 293.6 Transportation -143.8 Imports 1,54.7 Travel 5.9 Services 143.6 Other Services -213.4 Exports 713.2 Imports 569.6 C. Income -52. Primary Income -52. Compensation of Employees 5.1 Credits 111.3 Investment Income -12. Debits 163.2 Secondary Income 596.6 D. Current Transfers 596.6 Credits 659.7 Official 43.7 Debits 63. Private 552.9 Capital Account 5. Credits 5. 2. Capital & Financial Account 52.7 Debits. A. Capital Account 5. -67.9 Capital Transfers 5. Official. Private 5. Financial Account Net lending (+) / net borrowing (-) (balance from current and capital account) Acq/Disp. of Non-produced Non-fin. Assets. Net lending (+) / net borrowing (-) (balance -132.1 from financial account) B. Financial Account 47.7 - Direct Investment -177.4 Direct Investment 177.4 Net acquisition of financial assets.9 Portfolio Investment 235. Net incurrence of liabilities 178.2 Other Official Investment -64.4 Portfolio Investments 16.1 Other Private Investment (incl. Errors & Omissions -276.6 Net acquisition of financial assets -75. Reserves -23.6 Net incurrence of liabilities -91.1 Financial Derivatives -1.2 1/ Preliminary Net acquisition of financial assets -1.3 International Accounts Unit Net incurrence of liabilities -.1 Economic Information & Publications Dept. Other Investments 6.7 April 216 Net acquisition of financial assets 124.3 Net incurrence of liabilities 117.7 direct mapping Reserve Assets 23.6 change of sign on all Financial Account Items Net Errors and Omissions -64.2 1/ Preliminary International Accounts Unit Economic Information & Publications Dept. April 216 22

BANK OF JAMAICA Nethersole Place P.O. Box 621 Kingston, Jamaica Telephone: 876 922 75 Internet: www.boj.org.jm 23