Tuesday 20 October, 2020

Jamaican economy records modest growth in third quarter

Modest growth of 0.8 per cent was recorded by the Jamaican economy during the third quarter, when compared to the corresponding period in 2016, according to the Statistical Institute of Jamaica (STATIN).

The increase was mainly attributed to improved performances in both the services industries which grew 1.0 per cent, and the goods-producing industries which saw growth of 0.3 per cent.

STATIN said all industries within the services industries recorded increased levels of output. Electricity and water supply grew by 2.4 per cent, hotels and restaurants by 3.9 per cent and transport, storage and communication by 1.1 per cent.

Other areas that saw growth were real estate renting and business activities; wholesale and retail trade; repairs covering installation of machinery and equipment; finance and insurance services as well as producers of government and other services.

STATIN said the growth in the hotels and restaurants industry was influenced by an improvement in hotels and short-stay accommodation and restaurants, bars and canteens.

However, the Institute noted that while there was an increase of 11.8 per cent in foreign national arrivals, the growth in accommodation services was tempered by a decline in the average length of stay in hotels and short-stay accommodation. The average length of stay fell to 8.6 nights in 2017 from 9.1 nights in 2016.

Meanwhile, output for the goods-producing industries increased by 0.3 per cent, largely due to a 2.3 per cent increase in manufacturing and a 1.2 per cent increase in construction.

The construction industry's performance reflected increased activities in both the civil engineering and building construction components.

However, the unfavourable weather as a result of heavy rainfall put a damper on the agriculture, forestry and fishing industries which saw decline of 0.8 per cent.

Mining and quarrying also fell by 7.8 per cent. STATIN said the decrease in the mining and quarrying industry resulted from a fall in alumina production and bauxite mining.

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