Our macro-economic environment is strengthening

[Karl]

<TABLE cellSpacing=0 cellPadding=1 width="100%" border=0><TBODY><TR><TD><SPAN class=TopStory>Our macro-economic environment is strengthening</SPAN>
<SPAN class=Subheadline></SPAN></TD></TR><TR><TD>Dennis Morrison
Sunday, October 15, 2006
</TD></TR></TBODY></TABLE>
<P class=StoryText align=justify>The monthly inflation rate for September, which was reported a few days ago, came out at 0.7 per cent, and consequently, the inflation rate for the year ending September 2006 turned out to be 6.5 per cent. This performance represents a sharp decline from the 19 per cent recorded for the year ended September 2005.<TABLE cellSpacing=0 cellPadding=5 width=70 align=left border=0><TBODY><TR><TD></TD></TR><TR><TD><SPAN class=Description>Dennis Morrison</SPAN></TD></TR></TBODY></TABLE><P class=StoryText align=justify>Importantly, it puts Jamaica close to the rate of roughly 5 per cent that obtains in the USA, signalling that we have returned to the range of moderate inflation countries.<P class=StoryText align=justify>With inflation falling sharply, interest rates trending down, and the fiscal deficit within striking distance of 2 per cent of GDP, there is good reason to be confident that the macro-economic environment in Jamaica is strengthening. In assessing global economies, this is one of the major factors determining competitiveness and an area which has tended to depress Jamaica's rating.<P class=StoryText align=justify>Sustaining the improvements that have been made will therefore lead to a lifting of our standing in the future, and with that, greater attractiveness of the country for investment, among other things.
Considering that investment is a major driver of economic growth and job creation, we should be keen to maintain and further strengthen the macro-economic environment and not view it as an abstract issue as is often done in Jamaica.<P class=StoryText align=justify>Moreover, the inflation rate, which is a key indicator of macro-economic environment, is of practical importance to the lives of people because it relates to the pace at which the cost of living is rising. A faster pace erodes the value of incomes of wage-earners, while moderate inflation leaves consumers with more purchasing power.<P class=StoryText align=justify>In the most recent report on global competitiveness, Jamaica's ranking improved from 63rd position in 2005 to 60th position this year. To get further up the ranking, as indicated above, we must achieve greater stability in the macro-economic area, but we will also have to deal with the other factors that determine competitiveness.<P class=StoryText align=justify>A key factor is our productivity levels, about which Dr Charles Douglas of the National Productivity Centre wrote recently. In his paper, it was pointed out that Jamaica's labour productivity had increased at a low rate over the past 50 years.<P class=StoryText align=justify>According to the data presented, output per worker in Jamaica increased at an annual average of 8.4 per cent in the 1950s, but slipped to 4 per cent in the 1960s and turned negative in the 1970s.<P class=StoryText align=justify>In the 1980s, there was an even further deterioration, and the picture for the 1990s and the early years of this decade has been mixed. Much ground has been lost over the decades, and fundamental work is required to return us to a path of sustained improvement, not just in labour productivity, but in the productivity of other factors of production.<P class=StoryText align=justify>I suspect that since the labour productivity calculations are based partly on our GDP figures, and that these figures do not fully reflect the structural changes in the economy, there is some understating of the productivity levels.<P class=StoryText align=justify>As I have often pointed out, both the World Bank and the IMF have c

[Assasin]

RE: Our macro-economic environment is strengthening

Karl this bredda is a joka. Him try to spin, how he didn't mention our GDP growth of 0.6 which is one of the biggest economic indicator?

When will these people learn that only creation of wealth can make JA better?

[Muadib]

RE: Our macro-economic environment is strengthening

<P class=StoryText align=justify>"A key factor is our productivity levels, about which Dr Charles Douglas of the National Productivity Centre wrote recently. In his paper, it was pointed out that Jamaica's labour productivity had increased at a low rate over the past 50 years.<P class=StoryText align=justify>According to the data presented, output per worker in Jamaica increased at an annual average of 8.4 per cent in the 1950s, but slipped to 4 per cent in the 1960s and turned negative in the 1970s.<P class=StoryText align=justify>In the 1980s, there was an even further deterioration, and the picture for the 1990s and the early years of this decade has been mixed. Much ground has been lost over the decades, and fundamental work is required to return us to a path of sustained improvement, not just in labour productivity, but in the productivity of other factors of production.<P class=StoryText align=justify>I suspect that since the labour productivity calculations are based partly on our GDP figures, and that these figures do not fully reflect the structural changes in the economy, there is some understating of the productivity levels."<P class=StoryText align=justify>They effed up in the 70's, there was a correction in the 80's and they have effed up since '89. You have underperformed relative to the region, you have been weighed and measured and found wanting in the area of national development. You have passed in flying colors in the area of Political Tribalism,Garrison production,Distribution of scarce spoils and benefits and Populist Tendencies. Trafigura is simply the tip of the Iceberg of corruption and mismanagementthat has derailedthe Jamaican Ship.<P class=StoryText align=justify>Bottom line Morrison.. some things you should not try to spin, you only end up compromising your crediblity..at this point Morrison you have none... We understand your position but please..spare us.<P class=StoryText align=justify>