Nov 2008 Financial News

Shaw sees positive economic indicators in Jamaica

Nov 14, 2008

Finance Minister Audley Shaw in the face of global financial upheaval has painted a rosy picture for Jamaica's economy saying that critical foreign exchange earners, tourism and remittances, are performing better than last year."To the end of September, remittances were just about 7.8 per cent over the same period last year," Shaw told members of the UDrive Association at its annual general meeting held yesterday at the Terra Nova All Suite Hotel in Kingston.

Tourism, he said, despite the dismal economic environment has been five per cent ahead over the comparative period last year. "It is projected that up to December it will be 5.5 per cent over last year," Shaw disclosed.At the same time, the finance minister strongly cautioned against hoarding of foreign exchange, declaring that there is no shortgae of foreign exchange in Jamaica.

Over the past five weeks, the Jamaican dollar slipped almost five per cent to trade at more than J$77.50 to US$1 up to last Friday. "It does not do anyone any good to do anything to disturb the normal inflows and outflows of foreign exchange," Shaw declared. "There is no reason for it, there is no basis for it, and I am urging those who for any selfish or greedy basis would seek to be disruptive to the foreign exchange market, I beg you don't do it," he emphasised.

Shaw charged that there were Jamaicans who had foreign exchange while others needed it but were unable to gain access. "What we have is that there are those who are holding on to it while other people need it" said Shaw."I encourage all stakeholders, all Jamaicans to support the stability in the foreign exchange market," he added.

The finance minister also argued that the NIR, now at US $1.8 billion, is just about the same as it was in December last year."Up to December last year we did not have the economic storm that we are going through now," he said.Shaw added that the banking sector was stable and showed a bad debt portfolio less than the accepted international standards."The bad debt portfolio is at 2.8 per cent which is well within the international accepted standard which goes as high as 10 per cent," he declared.



Source:
Patrick Foster
The Jamaica Observer
Friday October 14, 2008
http://www.jamaicaobserver.com/magazines/Business/html/20081113T220000-0500_142567_OBS_SHAW_SEES_POSITIVE_ECONOMIC_INDICATORS_IN_JAMAICA.asp