• Fifty-seven companies have been onboarded under phase four of the Jamaica Promotions Corporation (JAMPRO) EXPORT MAX program. EXPORT MAX was designed to enhance the competitiveness and sustainability of Jamaican companies to position themselves to enter new and existing international markets to facilitate growth.
• The Minister of Investment and Commerce, Senator Aubyn Hill, praised the organizers of the initiative for offering vital support to micro, small, and medium-sized enterprises (MSMEs) that are looking to broaden their market reach internationally.
• “The importance of exporting cannot be overstated. It is the engine that will drive our GDP growth and elevate our per capita GDP. I am particularly proud of the 57 companies in the EXPORT MAX program,” he said, pointing out that 36 entities are operated by women.
• Meanwhile, JAMPRO President Shullette Cox has stated that the agency has recognized the persistent challenges faced by MSMEs in entering international markets through ongoing dialogue with exporters. In response, the program was redesigned and expanded during the phase for the third cohort, utilising public-private partnerships (PPPs) to respond to the MSMEs’ needs.
• She further highlighted that EXPORT MAX will aid participating entities in unlocking their full export potential through JAMPRO’s advocacy agenda, mentorship, and coaching program, as well as tailored development and promotional solutions.
• Launched in 2011, the EXPORT MAX program was implemented by JAMPRO in partnership with the Jamaica Business Development Corporation (JBDC) and Jamaica Manufacturers and Exporters Association (JMEA). JAMPRO provides technical support, while the JBDC facilitates capacity-building through targeted interventions to equip participating firms to access and service identified export markets.

 (Source: Caribbean National Weekly)

• Latin America and the Caribbean recorded a second consecutive year of decline in the flow of global foreign direct investment (FDI), receiving US$184.304 billion last year. This is 9.9% lower than that registered in 2022 but remains above the average of the last decade, the Economic Commission for Latin America and the Caribbean (ECLAC).
• The weight of foreign direct investment inflows in the region's GDP also decreased since in 2023, it represented 2.8%. However, the region's participation in total global FDI flows (14%) was higher than the average percentage in the 2010s (11%).
• The decrease in FDI flows received by Brazil (-14%) and Mexico (-23%), the two countries with the largest participation in total inflows, explains the result of the region. In South America, Peru also saw a fairly sharp decline in FDI inflows (-65%), while Argentina and Chile saw an increase (57% and 19%, respectively).
• However, Central America and the Caribbean received more investments than in 2022 (12% and 28%, respectively). In Central America, nearly all the countries received more FDI, with notable growth in Costa Rica (28%) and Honduras (33%), while the increase in the Caribbean is due mainly to greater inflows in Guyana (64%) and the Dominican Republic (7%).
• FDI inflows into Jamaica were 18% higher in 2023 than in 2022. However, the total amount, US$ 377 million, was below the average of the last decade, and the momentum of the pre-pandemic period has never been regained. Inflows were mainly concentrated in the service sector, which accounted for 85% of the total and registered its largest inflows since 2016. The attractiveness of the service sector in Jamaica was also reflected in project announcements, which, in the case of business services, amounted to some US$ 10 million, 82% higher than the amount announced in 2022.
• “Foreign Direct Investment can help tackle, in particular, the first of the three development traps in which Latin America and the Caribbean is caught: the trap of low capacity for growth. To this end, we need policies to attract investments that put emphasis not only on attracting them but also on what happens once they are established, and that connect these policies with the productive development policies of countries and their territories. All of this requires strengthening the technical, operational, political and prospective (TOPP) capabilities in this area,” ECLAC’s Executive Secretary, José Manuel Salazar-Xirinachs, said.

(Source: United Nations)

• In its July 2024 monetary policy meeting, the Central Bank of the Dominican Republic (BCRD) decided to keep its policy interest rate (TPM) steady at 7.00% annually. This decision reflects the evolution of the international environment, particularly the sustained high interest rates in the United States, increased commodity prices, and higher container shipping costs.
• The BCRD also announced that the overnight liquidity expansion facility rate remains at 7.50% annually, while the overnight deposit rate continues at 5.50% annually. These decisions consider the robust performance of the Dominican economy and the growth of private credit, with inflation remaining within the target range of 4.0% ± 1.0%.
• Interannual inflation in the Dominican Republic has significantly decreased, standing at 3.46% in June 2024, within the lower range of the target due to the monetary and fiscal policies implemented over the past year. Core inflation, which excludes the most volatile components of the basket and is more directly associated with monetary conditions, was around the target center at 3.98% in June 2024.
• National economic activity expanded by 6.2% year-on-year in June, with an average growth of 5.1% in the first half of 2024, aligning with its potential. The economy is expected to grow by around 5% in 2024, one of the highest expansions in the region, according to international organizations like the International Monetary Fund (IMF) and the World Bank.
• Relative exchange rate stability has been maintained, and international reserves have increased to over US$15.2 billion in July, equivalent to more than 12% of the country’s gross domestic product (GDP) and around six months of imports, exceeding the metrics recommended by the IMF.

 (Source: Dominica Today)

• Canadian economic activity expanded at a slower pace in July as a measure of inflation fell to a four-month low, Ivey Purchasing Managers Index (PMI) data showed on Wednesday.
• The seasonally adjusted index fell to 57.6 from 62.5 in June. The Ivey PMI measures the month-to-month variation in economic activity as indicated by a panel of purchasing managers from across Canada. A reading above 50 indicates an increase in activity.
• The gauge of employment rose to an adjusted 56.1 from 52.9 in June, while the prices index was at 59.2, down from 62.3 and its lowest level since March. The unadjusted PMI fell to 55.3 from 62.4.

(Source: Reuters)

• Total U.S. household debt levels edged up in the second quarter, but overall delinquency rates stabilised, indicating that borrowers are still in decent enough shape to support the economy, a report from the Federal Reserve Bank of New York said on Tuesday.
• The bank report, part of its survey of household debt and credit conditions, showed that overall debt levels rose by $109Nn, or 0.6%, in the second quarter to $17.80 trillion. Overall borrowing levels are now $3.7Tn above where they were at the end of 2019.
• Worse-than-expected job market data last week has made financial markets nervous that the economy may be on the cusp of a downturn. Fed policymakers, who already signaled they expect to begin cutting rates in September now that inflation is near the 2% target rate, have said they don't want to wait too long before lowering rates and have cited delinquencies as one area they are closely monitoring.
• On that front, there was some relief with the report showing that overall delinquency rates remained at 3.2%, unchanged from the first quarter, and still well below the 4.7% rate seen at the end of 2019 before the coronavirus pandemic. However, transitions in delinquent borrowing levels rose slightly in the second quarter for credit cards and auto loans, both remaining elevated although the pace of worsening slowed.
• Mortgage balances were up by $77Bn to $12.52Tn, while auto loan levels increased by $10Tn, and overall credit card borrowing outstanding rose by $27Bn by the end of the quarter to $1.14Tn. Credit card balances during the quarter were 5.8% above the level they stood at a year ago. Retail cards and other consumer loans were effectively flat, while student loan balances declined by $10Bn.

(Source: Reuters)

• Kevin Gordon, the Chief Executive Officer of tTech Limited, has announced the appointment of Rob Mayo-Smith as the company's Chief Operating Officer. The appointment became effective July 25, 2024.
• Rob Mayo-Smith has worked across the Caribbean in several senior positions, including CFO, CEO, regional CEO for Digicel, and Country Manager for Cable and Wireless. As COO, he will be responsible for managing the day-to-day operations of tTech.
• On July 11, 2024, the Directors of tTech Limited disclosed that two majority shareholders, Edward "Teddy" Alexander, and G. Christopher Reckord, divested 52,012,834 tTech shares. This sale constituted 49.1% of the issued shares of tTech Limited and was acquired by Simply Secure Group.
• Simply Secure Group, a security service provider situated in Ft. Lauderdale, Florida, is owned by Kevin Gordon and Rob Mayo-Smith, who currently hold the positions of CEO and COO at tTech, respectively.
• The acquisition is anticipated to create synergistic benefits for both companies, especially in the realm of cybersecurity.

 (Sources: JSE & NCBCM Research)

• Mexico's headline inflation rate likely accelerated again in July to reach its highest level in more than a year, while the core index is forecast to continue to moderate, a Reuters poll showed on Tuesday.
• Increasing prices in July would likely make it more difficult for the Mexican central bank to cut its key interest rate in its decision later this week. The median estimate of 16 analysts forecast an annual headline inflation rate in July of 5.57%, its highest level in more than a year and its fifth consecutive month of ticking up.
• The poll showed that annual core inflation, which eliminates volatile energy and food prices, likely fell in July for the eighteenth consecutive month to settle at 4.02%, its lowest level since February 2021.
• At the end of June, the central bank decided to hold its benchmark interest rate steady after lowering it in March for the first time since it began its restrictive cycle in mid-2021. At the time, however, the bank noted that slowing inflation could pave the way for cuts.
• Since then, headline inflation has shown upward pressures even as core inflation approaches the monetary authority's target range of 3%, plus or minus one percentage point. The monthly rise in consumer prices for July was seen at 1.02%, relative to the previous month, while core inflation was expected to increase by 0.29%, according to the survey.
• The National statistics institute INEGI will release July inflation data on Thursday, and later in the day the central bank is scheduled to make its monetary policy announcement.

(Source: Reuters)

• The government of Guyana explained that it has been able to take measures to cushion the cost of living and increase the price of basic foodstuffs for the population. In a live broadcast, the president reminded the nation that the rise in global food prices and the costs of transportation, goods, and services resulted from the Russian-Ukraine war and the global pandemic, among other disruptions.
• In the European Union, food price inflation increased from the last quarter of 2021 to reach 7.5% in May 2022. In Latin America and the Caribbean, food price inflation surged by 81.6% between January 2022 to September 2023.
• However, the low food inflation rate in Guyana is due to deliberate investments and measures implemented by the government to boost food production by providing the necessary support to the poultry sector and farmers. This is achieved through the deliberate interventions of the government and the policies and programs in the budget that are buttressing the economy and creating an environment that leads to stability.
• The government implemented a slew of measures to further reduce food inflation, such as the removal of value added tax (VAT) on fertilisers, agrochemicals, pesticides and several inputs in the poultry industry, at an annual estimated cost of $262 Mn.
• Further, to boost food production, the government removed VAT on machinery, corporate income tax, reversed drainage and irrigation (D&I) fees, constructed shade houses, farm to market roads and D&I infrastructures.
• The government reinstated the ‘Because We Care’ cash grant, placing over $22Bn into the hands of parents over the last four years, to supplement the income of many households. Old age pension and public assistance were increased by more than 75% and 111.1%, respectively. The undertaking provided over $13.4Bn and $2.8Bn into the hands of these beneficiaries, respectively.
• Before the end of 2024, President Ali has pledged to highlight more strategies that will increase disposable income at the household level and expand prosperity.

(Source: St. Kitts and Nevis Observer)

• China's exports grew at their slowest pace in three months in July, missing expectations and adding to concerns about the outlook for the vast manufacturing sector, while a rush to boost chip supplies before expected U.S. tech curbs bumped up imports. Analysts say China's factories will likely face stiff pressure in the months ahead, hobbled by Western tariffs and demand woes, while volatility in financial markets and U.S. recession fears raise fresh challenges for policymakers trying to bolster a fragile economic recovery.
• Outbound shipments climbed 7.0% in July from the year earlier, and customs data on Wednesday showed a slower pace of growth than June's 8.6% rise and missing forecasts of a 9.7% increase. "Due to base effect, China's exports may keep a single-digit growth in the near future, but considering the slowing external demand and tariffs, the outbound shipments in the second half of 2024 will face bigger pressure," said Lynn Song, chief economist for Greater China at ING.
• Imports rose at a robust 7.2% rate, reversing a 2.3% decline in June and marking the strongest performance in three months. It also beat analysts' expectations of a 3.5% rise. The brighter imports figures were underpinned by Chinese firms' rush to purchase chips ahead of expectations of further United States curbs on chips exports to the Asian giant, said Xing Zhaopeng, senior China strategist at ANZ.
• "Looking ahead, the upward trade cycle may have ended. Both imports and exports are expected to slow down in the third quarter." The slowdown in export growth adds to concerns about the outlook for the sector, analysts say, with many countries growing increasingly uneasy about China's trade dominance.

(Source: Reuters)

• US shares opened higher on Tuesday as an uneasy calm returned to global markets after days of sharp falls. The Nasdaq closed 1% higher, the S&P 500 rose by 1%, and the Dow Jones was 0.8% higher. London's FTSE 100 closed 0.2% higher, while Germany's Dax ended flat, and France's Cac 40 lost 0.3%. Markets in South Korea and Taiwan regained ground, rising around 3.5% after record falls.
• Stock markets were hit by a global sell-off on Friday as weak US jobs growth stoked fears of a downturn in the world's largest economy. Official data showed employers added 114,000 jobs in July, far fewer than expected, while the unemployment rate rose to 4.3%, the highest in nearly three years. The figures suggested the long-running US jobs boom might be ending, driving speculation about when and by how much the Federal Reserve will cut interest rates. High borrowing costs and signs of a waning AI-fueled rally also worried markets.
• Friday's decline brought the Nasdaq down about 10% from its recent peak. The Dow Jones dropped 1.5%, and the S&P 500 ended 1.8% lower, following declines in Asia and Europe. Japan's Nikkei 225 index tumbled nearly 6%. The Federal Reserve held interest rates but signaled likely cuts in September.
• Recession fears have renewed calls for the Federal Reserve to cut interest rates in September. Last week, the Fed held rates at 5.25%-5.5%, the highest in two decades, while other central banks cut rates. Some experts believe this was a mistake, likely causing continued market volatility. "Markets are very volatile and will likely stay so until the Fed decision in September," said Stefan Angrick of Moody's Analytics. Seema Shah of Principal Asset Management questioned if the Fed had waited too long, noting job gains had dropped below the 150,000 threshold for a solid economy.
• The market turmoil occurred amid a heated US presidential campaign, intensifying political debate over the Fed's actions. President Joe Biden said the economy was still making progress, with the US economy expanding at an annual rate of 2.8% this spring. Analysts noted the unemployment rate rise was driven by more people looking for work, not a surge in job losses.

(Source: BBC News)