BOJ Projects GDP Growth of Up to 3% for FY 2025-26

• The Bank of Jamaica (BOJ) is projecting that gross domestic product (GDP) growth in Jamaica will recover in the range of 1.0% to 3.0% for the financial year 2025-26, largely due to the performance in the agriculture, mining, and tourism sectors.
• Governor Richard Byles shared this projection during a recent press conference at the Bank’s headquarters in downtown Kingston. However, he noted that expectations were for growth to cool thereafter. “Subsequently, growth is forecast to normalise in the range of 1.0% to 2.0%. Employment levels remain high, even as anecdotal data suggest that wage pressures are moderate,” he said.
• Meanwhile, he noted that the BOJ estimates that the domestic economy grew in the range of 1.0% to 2.0% for the June 2025 quarter, resulting from expansion in most industries.
• Notwithstanding the positive economic outlook, Governor Byles pointed to uncertainties related to the policies of the United States (US), as that country continues to reset relationships with its trading partners and tighten its immigration policies.
• “These developments may slow the pace of economic activity and could cause inflationary pressures in the US, which could adversely affect the Jamaican economy,” he said.

(Source: JIS)