Oct 2005 Financial News

Business community: Jamaica in economic malaise

Oct 24, 2005

THERE APPEARS to be an emerging consensus in the business community that Jamaica is in an “economic malaise”.

Inflation seems not likely to come down in line with the Government forecasts, and the increase in GCT by 1.5 per cent beginning to adversely impact the economy by reducing overall spending power and disposable income.

As a consequence, leaders of the Jamaican business community appear to be calling for immediate measures to address inflation, crime and government spending, to take Jamaica out of its current negative economic situation.

Last week’s release of the third quarter business and consumer confidence indices of the Jamaica Chamber of Commerce (JCC) provides a good backdrop for this call as it revealed a very sharp fall in business confidence of over 20 per cent from the previous quarter to its lowest level in four years.

According to the survey, the reasons for this loss of business confidence included crime and violence, inflation, rising fuel costs and loss of confidence in government policy.

JCC President Noel DaCosta shares Professor Curtin’s view. “The JCC is very concerned about the current economic malaise. There appears to be clear evidence that the business community is currently thinking about other things than making business grow, for example, crime, the exchange rate, the effect of natural disasters on inflation, which is not good for growth going forward.”

Superplus’ Wayne Chen believes the most likely explanation for this “economic malaise” is the constant hike in fuel prices, which appears to finally be taking its toll on the consumer, and the recent slippage in the dollar.

The Trinidad Guardian
Monday, 24th October, 2005
http://www.guardian.co.tt/business2.html