Economy shows signs of abatement in the rate of decline and some positives

According to the Planning Institute of Jamaica (PIOJ), the local economy contracted by 0.5% in the third quarter of the 2010 calendar year compared to the same period last year. This compares to the 1.7% contraction in the first half of the year.

The rate of decline in the Jamaican economy has slowed, resulting from growth in the Agriculture, Mining and Tourism industries and an overall strengthening of the global economy. The Goods Producing Industries performed positively, recording growth of 2.0 per cent, although this was tempered by the impact of Tropical Storm Nicole in September while the Services Industries declined by 1.4 per cent.

Agriculture was the main contributor to the turn around within the Goods Producing Industry, up 6.0 per cent. Favourable weather conditions, the cessation of the drought, as well as the Ministry of Agriculture’s Production & Productivity Programme, significantly impacted performance. Although Tourism grew by 2.2 per cent this was insufficient to stave off the decline within the Services Industry.

On a positive note, the July 2010 report on the labour market saw the economy created 21,300 positive net jobs since the April 2010 report, compared to 6,000 net jobs for the corresponding period of last year. The PIOJ projects that the economy will witness marginal growth in the final quarter of the 2010/11 fiscal year along with growth of 1.00%-1.50% in the 2011 calendar year.