Feb 2017 Financial News

2016 growth rate increases to 1.4 per cent (Jamaica)

Feb 24, 2017

Jamaica recorded real value added growth of 1.4 per cent for the calendar year 2016, compared to the 0.9 per cent growth the country recorded in 2015, said the Planning Institute of Jamaica (PIOJ).

Director General Wayne Henry said the growth was attributable to increases in the goods producing industry, up 3.3 per cent and the services industry which was estimated to have grown by 0.8 per cent.

“The industries estimated to have recorded the largest growth during the year were agriculture, forestry and fishing, up 12.8; electricity and water, up 3.8 per cent; hotels and restaurants, up 2.1 per cent; and transport, storage and communication, up 0.6 per cent,” Henry noted during the review of the country’s economic performance of the October to December 2016 quarter on Wednesday.

The improved performance represents the fourth consecutive year of growth for the island.

According to the PIOJ, GDP growth over the last two years have been facilitated by improved macroeconomic stability, including low inflation, moderate currency depreciation, reduction in interest rates, successful completion of quarterly reviews by the IMF; increased business and consumer confidence; and higher employment levels.

Growth for the October to December 2016 quarter

For the quarter ending October to December 2016, the economy grew by an estimated 1.3 per cent relative to the corresponding quarter of 2015. The growth represents the eighth consecutive quarter of growth and reflected higher value added for both the services and goods producing industries.

Key drivers of growth during the quarter were favourable weather during 2016, which facilitated higher levels of production in the agriculture, forestry and fishing, and electricity and water industries.

According to Henry, increased hotel room capacity, major infrastructure works in addition to increased stopover visitor arrivals also boosted the performance for the quarter.

“Agriculture, forestry and shipping grew by an estimated 16 per cent relative to the corresponding quarter of 2016. This performance largely reflected the impact of initiatives implemented by the ministry to spur increased output and improved productivity.

“There was an increase in domestic crops reaped as well as improved rainfall levels which occurred during the previous and current quarters,” he said.

Despite the positive out-turn, economic performance was constrained by slower than planned execution of Government of Jamaica supported capital projects and production downtime associated with reduced demand from major purchaser of Jamaica’s crude bauxite, shipping delays which impacted alumina exports and temporary plant closure to facilitate maintenance and repairs.

Of the industries, mining and quarrying reflected the steepest decline by 12 per cent, led by crude bauxite production which fell by 33.5 per cent.

The manufacturing industry, however, registered an increase of 0.2 per cent, which was influenced by higher output from the food, beverage and tobacco category. Real value added for construction also grew by 0.8 per cent.

Finance and insurance services also showed improvement relative to the October to December 2015 quarter by 1.5 per cent, with growth reflected from an increase in net interest income on stock of loans at deposit-taking institutions as well as higher fees and commission income.

Source:
By Karena Bennett
Jamaica Observer
Friday February 24, 2017    

http://www.jamaicaobserver.com/business/2016-growth-rate-increases-to-1-4-per-cent_90513