Growth of 5.1% Recorded For The Jamaican Economy In 2022
- Jamaica’s economy is estimated to have grown by 5.1% between January and December 2022. This was disclosed by the Director General of the Planning Institute of Jamaica (PIOJ), Dr. Wayne Henry, who said the outturn was spurred by an estimated 6% growth for the Services industry and 2.1% for the Goods Producing Industry.
- All sub-industries are estimated to have recorded growth in output, with the exception of the Construction, and Mining, and Quarrying industries. Growth during 2022 was led by the Hotels and Restaurants (48.9%); Other Services (11.1%); Agriculture, Forestry, and Fishing (9%); and Transport, Storage, and Communication (6%)” industries.
- Meanwhile, the economy is estimated to have grown by 3.4% for the Q4 2022. The Goods-Producing Industry rose by an estimated 4.3%, while the Services Industry grew by an estimated 3%. This outturn largely reflected, among other factors, the positive impact of a strengthening of economic activities, as some industries showed signs of returning to and surpassing their pre-COVID-19 output levels, and increased external demand, supported by growth in the economies of Jamaica’s main trading partners.
- The economy’s short-term prospects remain generally positive, based on several factors, including the relative stability in the macroeconomy, evidenced by a tempering of the inflation outturn; and strengthened demand, stemming from increased economic activities, as most industries are expected to grow. Coupled with these, continued recovery in the economies of Jamaica’s main trading partners augurs well for increased external demand, for tourism services, for example.
- For the January-March 2023 quarter, the economy is expected to grow within the range of 3-5%, led by strong performances for the Hotels and Restaurants and Mining and Quarrying industries. Further, the economy is projected to grow within the 4-6% range for the fiscal year 2022/23. It is important to note that should the economy perform as expected for the remainder of 2022/23, Jamaica’s GDP would have fully recovered to pre-COVID-19 levels in this fiscal year, earlier than the initially projected date of 2023/24.
- Further, for the fiscal year 2023/24, the economy is projected to grow in the range of 1-3% and would largely reflect a faster-than-expected pace of recovery, leading to an earlier-than-anticipated normalisation of output and a return to the long-term trend of growth.
(Source: JIS News)