• Minister of Industry, Investment and Commerce, Senator the Hon. Aubyn Hill, is encouraging micro, small and medium-sized enterprises to get prepared as the Government positions the sector to be competitive globally.
• The push aligns with Jamaica’s broader economic agenda, which prioritises diversification, export promotion, and inclusive growth. “Jamaica’s MSMEs must become known regionally and internationally as more efficient manufacturers of goods and ever-improving crafters of ingenious services that people will buy,” Minister Hill said.
• “Jamaica is changing for the better and the business environment is changing rapidly. We are firmly on a path to international recognition as outstanding economic managers to add to the excellence we have achieved and are recognised for around the world. So we must keep our minds focused,” Senator Hill added.
• In a paper titled ‘Sustained Debt Reduction: The Jamaica Exception’, authors Serkan Arslanalp, Barry Eichengreen and Professor Peter Blair Henry, noted that the sharp, sustained reductions in public debt are outstanding “because public-debt-to-GDP ratios have been trending up in advanced countries, emerging markets, and developing countries alike”.
• He was contributing to the discussion at the Jamaica Business Development Corporation’s (JBDC) annual ‘Breakfast with the CEO’ event held recently at the AC Marriott Hotel in New Kingston. He highlighted that MSMEs are key drivers of economic growth and noted the Government’s commitment to enhancing the sector’s contribution to gross domestic Product (GDP) and sustainable development for the benefit of all citizens.
• MSMEs constitute a cornerstone of Jamaica’s economic landscape, fostering entrepreneurship, generating employment opportunities, and contributing to socio-economic development.

(Source: JIS)

• Tropical Renewable Energy, a majority-owned subsidiary of Tropical Battery Company, has been appointed an authorised reseller of eGauge Systems.
• Based in Boulder, Colorado, eGauge is one of the world’s leading providers of technologically advanced energy monitoring systems for residential and commercial use. The company’s hardware and software systems enable energy consumers and companies operating in the renewable energy and energy efficiency segments to monitor energy usage data in real-time and generate reports.
• Energy demand and consumption data are key inputs used in modelling the solar power and energy storage systems designed, installed, monitored, and maintained by Tropical Renewable Energy in Jamaica and the Dominican Republic.
• Tropical Renewable Energy's CEO, Oliver Hill, highlighted that the company has been utilizing eGauge Technology in its renewable energy installation with great success. The company is also pleased to be able to offer the full suite of eGauge products and services to renewable energy installers and end users in Jamaica, the Dominican Republic, and across the Caribbean as a distributor of this cutting-edge technology.
• “The addition of eGauge to our portfolio of renewable energy products and services enhances our offering and will help ensure Tropical Renewable Energy customers and installation partners have the best tools at their disposal to design and monitor solar power and energy storage systems to optimize efficiency and reduce costs,” Hill added.

(Source: JSE)

• The International Monetary Fund (IMF) upgraded its 2024 view for economic output growth in Latin America and the Caribbean to 2.0% from its January estimate of 1.9%, though it still expects a slowdown, the fund said on April 16 in its latest World Economic Outlook.
• The 2.0% GDP increase forecast for 2024 across the region compares to 2.3% in 2023 and a 2025 forecast of 2.5%. This is also above the World Bank's recent forecast of 1.6% growth in 2024 across the region.
• The overall slowdown in growth is due in part to smaller rates of growth in the region's largest economies. Yet Brazil's 2.2% growth estimate for this year is 0.5 percentage points higher than the January view.
• Notably, Guyana is forecasted to lead the pack in 2024 with a growth of 33.9%, while Antigua and Barbuda will register the second-highest growth of 6.1%. Other noteworthy growth projections for 2024 include Jamaica (1.8%). Trinidad and Tobago (2.4%), Barbados (3.7%), The Dominican Republic (5.4%), The Bahamas (2.3%), Panama (2.5%), and Mexico (2.4%).
• Elsewhere in the region, the IMF expects Argentina's contraction to deepen to -2.8% this year from 2023's -1.6%, with annualised consumer inflation of just under 250%.
• Overall, for Central America, the estimate is for 3.9% output growth, compared to 4.2% last year, while the Caribbean is seen accelerating further to 9.7% in 2024 from last year's 8.3%.

(Sources: IMF & NCBCM Research)

• The Government of Antigua and Barbuda has decided to absorb an increase in the cost of gasoline reported by the West Indies Oil Company (WIOC). According to WIOC, gasoline prices rose by five per cent, while diesel prices declined by three per cent. Despite these changes, the government has opted to maintain retail prices at the pump.
• In a statement, the government explained that its decision is based on the “refined pass-through mechanism for fuel prices, which takes into account revenue assurance, price stability, and maintenance of subsidies for certain petroleum products.”
• As a result, fuel prices in Antigua and Barbuda will remain as follows: gasoline at $14.50 per gallon, diesel at $14.25 per gallon, 20-pound LPG at $32.00 per bottle, 25-pound LPG at $40.00 per bottle, and 100-pound LPG at $155.00 per cylinder. Notably, the price of gasoline was raised just last month from $13.99 (all quoted in Eastern Caribbean Currency).
• Comparatively, the average regional prices for gasoline and diesel are currently $15.86 and $15.91 respectively. For LPG, the regional average for the 20-pound and 100-pound cylinders is $38.66 and $204.18, respectively.
• To ensure affordability for consumers, the Antiguan government continues to provide subsidies for LPG. These include a subsidy of $5.16 per bottle for 20-pound LPG, $6.45 per bottle for 25-pound LPG, and $17.64 per cylinder for 100-pound LPG.
• While these subsidies bode well for citizens, the maintenance of subsidies amidst rising prices will likely have the impact of increasing overall government expenditure which could likely result in a deterioration of the dual-islands fiscal balance if expenditures exceed revenues.

(Sources: Loops Caribbean News & NCBCM Research)

• Federal Reserve Chair Jerome Powell's statement regarding the lack of significant progress on inflation implies a cautious approach to monetary policy. The Fed is signalling that it's hesitant to ease its monetary stance by cutting interest rates at the upcoming meeting. This stance suggests that the Fed is prioritising its dual mandate of price stability and maximum employment. By keeping interest rates steady, the Fed aims to support sustained economic growth while guarding against the risk of inflationary pressures.
• Powell's comments triggered mixed reactions in the stock market. While the Dow saw a modest increase, the S&P 500 and Nasdaq Composite experienced slight declines. This mixed response reflects the uncertainty among investors regarding the implications of the Fed's decision to maintain interest rates.
• Despite inflation moderating from its peak in 2022, persistent price pressures in sectors such as services and housing remain a concern. Higher borrowing costs, coupled with elevated prices for essentials, have constrained consumer spending and stalled the housing market. The Fed's challenge lies in balancing the need to address inflationary pressures to sustain economic growth and employment levels. Its interest rate decisions will be influenced by incoming data on inflation trends and their impact on the broader economy.
• Analysts have varied opinions on the timing of the next rate cut. Some speculate that it could occur as early as July, while others anticipate a later adjustment, possibly after the summer. The timing of the rate cut will depend on multiple factors, including the trajectory of inflation, the pace of economic recovery, and global macroeconomic conditions.
• Fed officials, including Vice Chair Philip Jefferson, underscore the uncertainty surrounding the economic outlook and the importance of data-driven decision-making in determining monetary policy. This uncertainty contributes to fluctuations in market sentiment and investor expectations regarding future interest rate movements.

(Source: CNN)

• China's Q1 24 GDP surpassed expectations, growing by 5.3% year-on-year. Seasonally adjusted, the economy expanded at a solid pace of 7.4% quarter-on-quarter, compared to 5.8% in the previous quarter.
• Despite strong Jan-Feb activity, economic momentum moderated in March, with industrial production and retail sales growth below expectations.
• Fixed investment exceeded expectations, driven by policy support boosting manufacturing and infrastructure investment, despite weakness in real estate investment.
• Despite a marginal decrease in the urban unemployment rate, the manufacturing sector's outperformance didn't translate into significant employment growth. Revised down Q2 GDP growth forecast to a 4.0% quarter-on-quarter seasonally adjusted rate, with unchanged forecasts for the second half and full-year 2024. Additional stimulus is unlikely due to stronger-than-expected 1Q GDP, while structural imbalances in the economy persist, affecting demand-supply dynamics and inflation pressures.

(Source: JPMorgan)

• The average price paid for goods and services by Jamaican consumers decreased in March 2024 as reflected in a 0.5% decrease in the All-Jamaica Consumer Price Index (CPI). The decrease was influenced mainly by a downward movement in the heaviest weighted index, the ‘Food and Non-Alcoholic Beverages’ division (1.8%), amid lower prices for some agricultural produce such as cabbage, carrot, escallion, tomato, sweet potato, and yam.
• Tempering this decline were increases in the ‘Housing, Water, Electricity, Gas and Other Fuels’ and ‘Transport’ divisions of  0.9% and 0.2%, respectively. The increase in the ‘Housing, Water, Electricity, Gas and Other Fuels’ division was due to higher electricity rates while the increase in the ‘Transport’ division was primarily driven by higher petrol prices.
• The point-to-point inflation rate (March 2023 – March 2024) was 5.6%. This was 0.6 percentage points lower than the 6.2%  from February 2023 to February 2024. The main contributor was the lower rate of increase for the heaviest-weighted division ‘Food and Non-Alcoholic Beverages’ which rose by 4.8% in March compared to 7.7% in February.
• At its last monetary policy meeting in March, the BOJ kept the policy rate at 7.00% as it continued to monitor the pass-through effects of previous adjustments on deposit and loan rates. The next policy decision will be on the 20th of May when it is expected that BOJ will maintain its policy rate at 7.00%.
• While inflation has fallen over the last two months, farmers in Western Jamaica are now grappling with drought conditions. If these conditions persist, it may put upward pressure on food prices, the largest factor in the CPI basket.

 (Source: STATIN)

• Minister of Science, Energy, Telecommunications and Transport, Hon. Daryl Vaz, has hailed the investment by LASCO Distributors in a new solar energy system as a beacon of innovation and progress.
• He noted that the project, a welcome addition to the country’s sustainable energy infrastructure, demonstrates how renewable energy can be harnessed to benefit commercial and national objectives.
• “Its completion makes it one of Jamaica’s largest commercial solar and storage projects. Not only will it supply inexpensive, reliable electricity to power LASCO’s operations but also expect it to supply clean electricity and emergency backup power to the neighbouring Central Village Community Centre by a smaller system,” Vaz added.
• He was speaking at a ceremony to celebrate the successful completion of the University of the West Indies/LASCO 500 kilowatt Solar PV and Solar Battery Energy Storage Pilot Project on April 11, at LASCO Distributors’ White Marl plant in St. Catherine.
• The project was undertaken with support from the United States Agency for International Development (USAID) through the Jamaica Energy Resilience Alliance (JERA). The total investment was approximately US$2 million, with LASCO bearing 60 per cent of the cost and USAID covering the remaining 40 per cent.
• The project marks an important milestone for future renewable energy development in Jamaica and the partnership between the US and Caribbean governments to enhance energy security and mitigate climate-change impacts.
• Furthermore, LASCO says the implementation of the system will provide a platform for critical research into commercial-scale batteries for distributive generation.

(Sources: JIS)

• ExxonMobil has reached a definitive investment decision regarding the Whiptail development situated offshore Guyana, after securing requisite government and regulatory endorsements. The announcement was made on April 12, 2024, almost a week after Venezuela’s President Nicolás Maduro passed a law declaring the border region of Essequibo, which belongs to Guyana, a Venezuelan federal state. This announcement by Exxon indicates that the company is continuing to pursue its investment in Guyana’s oil and gas industry, despite the geopolitical risks posed by Venezuela’s recent actions.
• Whiptail, the sixth project within the Stabroek block is forecasted to augment daily capacity by approximately 250,000 barrels by 2027.
• According to Liam Mallon, President of ExxonMobil Upstream Company, Whiptail will elevate Guyana’s production capacity to approximately 1.3Mn barrels per day (bpd) in 2027 from  about 645,000 bpd in early 2024. He further underscored that through close collaboration with the Government of Guyana, partners, suppliers, and contractors, ExxonMobil saw unparalleled success in cultivating Guyana's resource reservoirs, achieved through industry-leading efficiency, cost-effectiveness, and environmental stewardship.
• Notably, the Stabroek block developments are among the least emissions-intensive assets within ExxonMobil's upstream portfolio. They are poised to supply global markets with additional dependable energy resources well into the future. The Whiptail endeavour, boasting a price tag of US$12.7Bn, is slated to encompass up to 10 drill centres, housing 48 production and injection wells.
• The production emanating from the six Stabroek block developments is anticipated to yield tens of billions of dollars in revenue and foster substantial economic growth in Guyana. Since production began in 2019, the Guyana Natural Resource Fund has received a contribution exceeding US$4.2Bn.
• The Floating Production Storage and Offloading (FPSO) vessel designated for the Whiptail project, to be named Jaguar, is presently undergoing construction. Concurrently, three FPSOs—Liza Destiny, Liza Unity, and Prosperity—are operational offshore Guyana. Collectively, they sustain the safe production of over 600,000 barrels bpd. Construction activities are underway for FPSOs earmarked for the Yellowtail and Uaru projects, with Yellowtail anticipated to commence production in 2025 and Uaru slated for 2026.

(Sources: ChemAnalyst & NCBCM Research)

• Tourism and energy activities represent the main sources of Foreign Direct Investment (FDI) in the Dominican Republic and have resulted in significant inflows for the country in 2023.
• According to statistical data from the Export and Investment Center of the Dominican Republic (ProDominicana), foreign investments in the tourism sector grew from US$1.05Bn to US$1.18Bn between 2022 and 2023.
• Furthermore, the energy sector saw a significant increase in FDI from US$749Mn to US$1.07Bn between 2022 and 2023. Overall, total FDI inflows amounted to US$4.39Bn in 2023 supported by growing sectors like commerce, real estate, free trade zones, mining, and finance.
• The United States, was the most significant source of foreign investments in the country, followed by Spain, Mexico, and Canada.
• Overall, the Dominican Republic has strong macroeconomic fundamentals and a diversified economy, becoming a manufacturing and service hub to take advantage of trade agreements as well as to continue to grow and attract foreign direct investment.
• Given this, the International Monetary Fund (IMF) forecasts strong growth in 2024 and beyond, with the consensus at 5% annually for the rest of the decade, barring any major domestic or international events.

 (Source: Dominican Today & NCBCM Research)