Jamaica has been ranked at number five on the Forbes list of worst economies in the world.
The list that was released this week ranked 177 countries according to three-year average statistics for Gross Domestic Product (GDP), growth and inflation, GDP per capita and the current account balance, a measure of whether the country has been importing more than it exports.
THE STAR understands that since last year there have been significant changes to the list. Countries like Zimbabwe and Ghana have moved off the list while Armenia and Jamaica fell into the lower ranks primarily because of the global financial crisis.
On a positive side, it was noted that Jamaica's poverty rate was cut almost in half to 10 per cent in recent years and also that literacy had increased to 88 per cent.
brief period of prosperity
The country noted to have the worst economy is Madagascar. According to the list, the countries poor economic performance mirrors the turmoil in its politics. After gaining independence from France in 1960, the country went through a brief period of prosperity. But per-capita GDP has trailed most of the rest of the world since the early 1970s as Madagascar's population has grown faster than the economy.
Armenia sits at number two on the list. This rank is credited to the fact that the economy shrank by 15 per cent in 2009 as an expatriate-financed construction boom fizzled along with the world economy. Added to that, Russia has cut back on supplies of diamond, which hurt the countries once thriving diamond-processing industry.
The West African nation of Guinea is third. This country sits on half the world's accessible bauxite reserves but has had trouble attracting productive investment. At number four is Ukraine, which is seen as a country that could become a leading European economy due to its rich farmland and generous mineral resources.
The countries rounding out the top 10 are, Venezuela which sits at number six, the central Asian republic of Kyrgyzstan at number seven, Swazi-land at number eight, Nicaragua at number nine and holding the number 10 spot is Iran.
precarious position
In an interview with economist Renee Anne Shirley, she said that at present she was unable to comment on the list because she had not got a chance to analyse it. However, she added that, "There is no question that we are in a precarious position in terms of the Jamaican economy because even though we had the debt exchange, the problem is that we extended the period and the debt is still there to be repaid."
In the meantime, when the list began circulating online yesterday persons took to Facebook to comment on the matter.
One person wrote, "U mean fi tell mi sey Jamaica beat Zimbabwe whe one bread cost one billion dolla? We bad but mi find dat haad fi believe!!"
Another person wrote, "Bruce and Shaw uno have sumting fi tell wi? Uno sell the country wid wi and no tell wi? Wi got any assets lef? Cause the only way wi coulda deh pon dis list if wi no have no natural resources fi wi self ..."
PAULA GORDON, STAR Writer
Forbes list claims ... The Worst Economy is Madagascar
