Tuesday 10 December, 2019

Economy records 0.3% growth in July to September quarter

Growth was impacted by the “operational closure of the Alpart Alumina Refinery during the period, which resulted in a sharp contraction in the mining and quarrying industry".

Growth was impacted by the “operational closure of the Alpart Alumina Refinery during the period, which resulted in a sharp contraction in the mining and quarrying industry".

The closure of the Alpart alumina refinery in St Elizabeth which is being modernised and the protracted trade war between the United States and China, the world’s two biggest economies were in large part responsible for the negligible 0.3 per cent growth recorded by the Jamaican economy in the July to September quarter.

This is according to the Planning Institute of Jamaica (PIOJ), in its latest review of economic indicators.

Director General of the Institute, Dr Wayne Henry, provided the information on Tuesday during the PIOJ’s quarterly media briefing at its New Kingston headquarters.

He said growth was impacted by the “operational closure of the Alpart Alumina Refinery during the period, which resulted in a sharp contraction in the mining and quarrying industry".

Additionally, the impact of the trade war between the United States and China resulted in the slowing of economic growth in some of the more advanced economies; negatively impacting Jamaica's demand for goods and services particularly in the mining and quarrying and hotels and restaurants industries.

Henry said growth was driven by increases in the finance and insurance services, hotels and restaurants and the manufacturing industries.

Dr Waynne Henry, Director General of the PIOJ.

“All industries within the Services Industry grew during the quarter. The industries registering the largest growth rates were finance and insurance services at 3.0 per cent; hotels and restaurants by 2.3 per cent and other services by 1.5 per cent,” Henry said.

The director general also said growth was driven by increased domestic demand, pushed by record levels of employment; increased consumer and business confidence levels which spurred investment and consumer demand; and continued stability in the macro economy.

Henry reported that there was an estimated 1.6 per cent increase in output for the manufacturing industry; however, the goods-producing industry contracted by 2.1 per cent in real value-added. This resulted from declines in industries such as mining and quarrying by 18.5 per cent; construction by 1.5 per cent and agriculture, forestry and fishing by 0.2 per cent.

The PIOJ reported that while major infrastructure projects such as road works were winding down, the construction of homes, in particular by the National Housing Trust continued apace.

Henry told the media briefing that industries such as agriculture, forestry and fishing and electricity and water were negatively impacted by drought conditions.

Looking forward to the next quarter, Henry said: “We expect real GDP for the October to December 2019 quarter to grow within the range of 0.0 to 1.0 per cent, resulting in the calendar year 2019 projection within a range of 0.5–1.5 per cent. For fiscal year 2019/20, the economy is projected to grow within the range of 0.0–1.0 per cent.” 

The closure of the Alpart alumina refinery in St Elizabeth which is being modernised and the protracted trade war between the United States and China, the world’s two biggest economies were in large part responsible for the negligible 0.3 per cent growth recorded by the Jamaican economy in the July to September quarter.

This is according to the Planning Institute of Jamaica (PIOJ), in its latest review of economic indicators.

Director General of the Institute, Dr Wayne Henry, provided the information on Tuesday during the PIOJ’s quarterly media briefing at its New Kingston headquarters.

He said growth was impacted by the “operational closure of the Alpart Alumina Refinery during the period, which resulted in a sharp contraction in the mining and quarrying industry".

Additionally, the impact of the trade war between the United States and China resulted in the slowing of economic growth in some of the more advanced economies; negatively impacting Jamaica's demand for goods and services particularly in the mining and quarrying and hotels and restaurants industries.

Henry said growth was driven by increases in the finance and insurance services, hotels and restaurants and the manufacturing industries.

“All industries within the Services Industry grew during the quarter. The industries registering the largest growth rates were finance and insurance services at 3.0 per cent; hotels and restaurants by 2.3 per cent and other services by 1.5 per cent,” Henry said.

The director general also said growth was driven by increased domestic demand, pushed by record levels of employment; increased consumer and business confidence levels which spurred investment and consumer demand; and continued stability in the macro economy.

Henry reported that there was an estimated 1.6 per cent increase in output for the manufacturing industry; however, the goods-producing industry contracted by 2.1 per cent in real value-added. This resulted from declines in industries such as mining and quarrying by 18.5 per cent; construction by 1.5 per cent and agriculture, forestry and fishing by 0.2 per cent.

The PIOJ reported that while major infrastructure projects such as road works were winding down, the construction of homes, in particular by the National Housing Trust continued apace.

Henry told the media briefing that industries such as agriculture, forestry and fishing and electricity and water were negatively impacted by drought conditions.

Looking forward to the next quarter, Henry said: “We expect real GDP for the October to December 2019 quarter to grow within the range of 0.0 to 1.0 per cent, resulting in the calendar year 2019 projection within a range of 0.5–1.5 per cent. For fiscal year 2019/20, the economy is projected to grow within the range of 0.0–1.0 per cent.” 

Get the latest local and international news straight to your mobile phone for free:

  

Comments