Commodities - Jamaica

Jamaica

The nominal value in the Commodities market is projected to reach US$25.63bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.51% resulting in a projected total amount of US$31.96bn by 2029.
The average price per contract in the Commodities market amounts to US$0.04 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$53,690.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 623.70k by 2029.

Market

Region

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Currency

Analyst Opinion

The Commodities market in Jamaica has been experiencing significant developments and trends in recent years. Customer preferences in Jamaica's Commodities market are shifting towards more diverse investment options, with a growing interest in alternative investment strategies beyond traditional stocks and bonds.

Investors in Jamaica are increasingly looking for ways to diversify their portfolios and manage risks through exposure to commodities. Trends in the market indicate a rising demand for Commodities as an asset class in Jamaica, driven by factors such as global economic uncertainties, inflation concerns, and the search for higher returns. Investors are turning to Commodities as a way to hedge against inflation and diversify their investment portfolios, leading to a growing market for these financial instruments in Jamaica.

Local special circumstances in Jamaica, such as the country's reliance on imports for key commodities like oil and agricultural products, play a significant role in shaping the Commodities market. Fluctuations in global commodity prices can have a direct impact on Jamaica's economy and financial markets, influencing investor behavior and market dynamics. Underlying macroeconomic factors, including exchange rate movements, interest rate policies, and government regulations, also influence the development of Jamaica's Commodities market.

Economic stability, inflation rates, and trade policies all play a crucial role in shaping investor sentiment and market trends in the Commodities sector. Overall, the Commodities market in Jamaica is evolving in response to changing customer preferences, global market trends, local special circumstances, and underlying macroeconomic factors. Investors in Jamaica are increasingly turning to Commodities as a strategic investment option, driving growth and innovation in the market.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.