Martinique is both a region and a French Overseas Department, where governmental powers are exercised by a single territorial authority. It is classified as a French Department of America and recognized as an Ultra-Peripheral Region (U.P.R.) of the European Union.
Located in the Caribbean archipelago, Martinique lies between Dominica to the north and Saint Lucia to the south. It is bordered by the Atlantic Ocean to the east and the Caribbean Sea to the west.
The island is approximately 6,900 km from Paris, 3,150 km from New York, 2,000 km from Miami, 1,500 km from French Guiana, and just 200 km from Guadeloupe.
General presentation of the economy in Martinique
With a population of around 360,000, Martinique represents a relatively small economic market. The island is highly dependent on external sources, with imports nearly eight times greater than exports.
Agriculture—particularly bananas and rum—along with other processed and locally produced food items such as jams, sodas, juices, and soft drinks, forms the backbone of Martinique’s export economy.
Fishing, aquaculture, industry, and crafts are sectors whose production is sold almost exclusively within the local market.
In 2019, exports of non-petroleum products totaled €234.4 million, reflecting an increase of 11.2% compared to the previous year. The majority consisted of non-durable consumer goods (€92.1 million or 39.3%), with nearly 91% being agri-food products. Among these, beverages dominated (73.1%), with rum leading the category, followed by sodas, mineral or sparkling waters, and other alcoholic drinks. Exports of bananas, another flagship product of the island, amounted to €72.7 million in 2019.
Martinique’s main suppliers were mainland France (69.9%), accounting for €1.5 billion in 2019, followed by the European Union (15% or €328.3 million, including €85.2 million from Germany), Asia (6.0% or €130.8 million), North America (€71.9 million, including €61.6 million from the United States), and 5.9% from the rest of the world (non-EU Europe, the Caribbean, and South America).
Most goods imported from France were non-durable consumer goods (39.4% or €603.4 million). Of these, more than half (51.3%) were agri-food products, and nearly a quarter (24.5%) were pharmaceutical products.
The foreign trade balance stood at a deficit of €2 billion in 2019, an increase of €10 million compared to the previous year.
Additional supply and transport costs are passed on to all economic players, resulting in prices that are sometimes nearly double those charged in mainland France.
Demographic data
With 358,749 inhabitants in January 2020, the population of Martinique has further decreased (-4,731) in one year (-1.3%). It has been part of a continuous decline since 2007, which is explained by the marked deterioration in net migration since 2005.
The migration balance—reflecting the difference between arrivals and departures—has reached historic levels, surpassing the records of the 1970s and the era of BUMIDOM (Bureau pour le développement des Migrations dans les Départements d'Outre-Mer), a program designed to encourage young people from overseas territories to move to mainland France to address labor shortages. Today, between 4,000 and 5,000 Martiniquans leave their homeland each year, primarily for mainland France.
Many young people depart the island immediately after earning their baccalaureate to pursue higher education in France or abroad. Few return after graduation, due to limited opportunities in the local job market.
Martinique is marked by an aging population. People over the age of 60 now represent nearly 30% of the population, with 10.2% aged 75 and older. This demographic shift is driven by the large-scale departure of young people, increased life expectancy, and a declining birth rate (1.89 children per woman). According to INSEE, this trend is expected to intensify, with projections indicating that people over 60 could make up 40% of the population by 2040.
Demographic indicators such as the death rate, fertility rate, and life expectancy in Martinique are similar or close to national averages.
Economic indicators
In 2018, Martinique’s GDP reached €8.9 billion, reflecting a growth of +2.4% in value. The GDP per capita was estimated at €24,411. This increase in volume can be attributed both to economic growth and to a decline in population. However, this figure remains below the national average, which stood at €35,151.
When compared to its Caribbean neighbors, Martinique ranks third in terms of GDP per capita, behind Trinidad and Tobago and Saint Kitts and Nevis. The island also boasts significant infrastructure: it has the fourth-largest container port in France, the 11th-largest airport for cargo traffic, and ranks 13th for passenger traffic
Employment
Employment in the tertiary sector is predominant in Martinique. Nearly 85% of salaried jobs are concentrated in the service sector, with significant representation in commerce, public administration, and tourism.
Public sector employment is substantial, accounting for 42% of local jobs. This includes positions within the state, municipalities, local authorities, intercommunal organizations, and state-owned enterprises.
The number of beneficiaries of minimum social benefits declined by 9.7% over the course of one year.
Despite this, the number of job seekers remains relatively high—approximately 38,670 as of December 2019—representing 15.1% of the working population. However, notable decreases were observed among individuals aged 25–49 (-9.2%) and, to a lesser extent, among seniors (-1.9%).
Employment on the island faces structural challenges compared to its Caribbean counterparts, largely due to the high cost of labor. Hiring a Martinican employee is expensive, primarily because of the numerous social charges that weigh heavily on both employers and businesses.
Economic activities
In 2019, the Martinican economy displayed one of its strongest performances in years.
Entrepreneurial confidence, previously subdued, showed a marked improvement. The business climate indicator rose above its long-term average, signaling a clear upswing in economic sentiment. A majority of entrepreneurs reported increased activity and expressed particular optimism about their investment plans for the coming 12 months.
Labor market conditions also improved, with the creation of over 2,000 net jobs for the second consecutive year. Thanks to a stable labor force, the unemployment rate fell by two percentage points.
Finally, outstanding loans continued to grow at a pace similar to the previous year, supporting both household consumption and corporate investment.
Tourism figures in 2019 remained encouraging, following two record-breaking years in 2017 and 2018. According to the Comité Martiniquais de Tourisme (Martinican Tourism Bureau), 963,894 tourists visited the island—a decline of 7.9%. This drop is largely attributed to the withdrawal of Norwegian airline routes connecting North America (the United States and Canada), the bankruptcy of XL Airways, and a sharp decrease in cruise passengers (-27.4%). However, the number of trippers and vacationers was higher in 2019 than in 2018.
The agricultural and food sectors faced a more challenging year, particularly due to disruptions in supply chains, rising raw material costs, and increased freight charges. These pressures forced many companies to significantly raise their prices.
The secondary sector also struggled, mainly due to the absence of large-scale infrastructure projects. Nevertheless, it managed to increase its workforce over the course of 2019.
This overall economic improvement was inevitably disrupted in 2020 by the global health crisis caused by COVID-19. Economies worldwide were affected, and Martinique was no exception. The figures for 2020 are expected to fall well below those of previous years. Moreover, the lockdowns—which led to the complete shutdown of certain businesses—may have dealt a fatal blow to some local enterprises.
The figures given in this article are those of the IEDOM (Institut d'Émission des Département d'Outre-Mer) or the INSEE or populationdata.net.