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Remittances down, GDP falls
By PATRICK FOSTER, Observer writer
Tuesday, May 19, 2009
THE global economic downturn is hitting home with remittance inflows for the January to March period declining by 15 per cent to US$414.6 million compared to the corresponding period in 2008, the Planning Institute of Jamaica (PIOJ) revealed in a report yesterday.
HUGHES... the intensification of the global recession continued to impact the overall performance of the Jamaican economy
Gross Domestic Product (GDP) for the first quarter also fell by 2.8 per cent, the PIOJ said at their quarterly economic review.
Remittances, the life blood for many Jamaicans providing routine support for expenses such as school fees, is the country's highest foreign exchange earner.
"What the drop means is that some people who used to send are not sending anything at all," consulting psychologist Leachim Semaj commented last evening.
Semaj however, contended that the reduction in remittances, so far, was something to which Jamaicans could adjust arguing that "we were still not close to the 1970s, the most destructive period in our history".
"The adjustments are well within our limits to absorb," said Semaj.
Bauxite, another of the island's top foreign exchange earners, has lost a huge chunk of its revenue since the start of the year pushing the decline in the first quarter GDP.
In fact, smarting from the global crisis, all industries in the local goods producing sector - except agriculture - registered declines for the review period.
"The intensification of the global recession continued to impact the overall performance of the Jamaican economy," PIOJ Director General Wesley Hughes said at the presentation.
PIOJ data revealed that the goods producing and services industries registered declines of 5.9 per cent and 1.6 per cent, respectively for the review period.
Mining & quarrying was the main contributor to the downturn in the goods producing sector, recording a 28.2 per cent reduction triggered by the scaling down of production in preparation for the temporary closure of the Windalco and Alpart alumina plants, Hughes said.
Output in the construction industry declined by 7.0 per cent reflecting reduced levels of activities in all components as work in both private and public sectors slowed. Manufacturing was also down 4.3 per cent over the similar period in 2008.
PIOJ figures however show agriculture recording marked improvement with an increase of 10.0 per cent over the corresponding period, which Hughes said was due largely to the recovery from the lingering effects of Hurricane Dean in 2007.
http://www.jamaicaobserver.com/news/...S_HIT_HARD.asp
By PATRICK FOSTER, Observer writer
Tuesday, May 19, 2009
THE global economic downturn is hitting home with remittance inflows for the January to March period declining by 15 per cent to US$414.6 million compared to the corresponding period in 2008, the Planning Institute of Jamaica (PIOJ) revealed in a report yesterday.
HUGHES... the intensification of the global recession continued to impact the overall performance of the Jamaican economyGross Domestic Product (GDP) for the first quarter also fell by 2.8 per cent, the PIOJ said at their quarterly economic review.
Remittances, the life blood for many Jamaicans providing routine support for expenses such as school fees, is the country's highest foreign exchange earner.
"What the drop means is that some people who used to send are not sending anything at all," consulting psychologist Leachim Semaj commented last evening.
Semaj however, contended that the reduction in remittances, so far, was something to which Jamaicans could adjust arguing that "we were still not close to the 1970s, the most destructive period in our history".
"The adjustments are well within our limits to absorb," said Semaj.
Bauxite, another of the island's top foreign exchange earners, has lost a huge chunk of its revenue since the start of the year pushing the decline in the first quarter GDP.
In fact, smarting from the global crisis, all industries in the local goods producing sector - except agriculture - registered declines for the review period.
"The intensification of the global recession continued to impact the overall performance of the Jamaican economy," PIOJ Director General Wesley Hughes said at the presentation.
PIOJ data revealed that the goods producing and services industries registered declines of 5.9 per cent and 1.6 per cent, respectively for the review period.
Mining & quarrying was the main contributor to the downturn in the goods producing sector, recording a 28.2 per cent reduction triggered by the scaling down of production in preparation for the temporary closure of the Windalco and Alpart alumina plants, Hughes said.
Output in the construction industry declined by 7.0 per cent reflecting reduced levels of activities in all components as work in both private and public sectors slowed. Manufacturing was also down 4.3 per cent over the similar period in 2008.
PIOJ figures however show agriculture recording marked improvement with an increase of 10.0 per cent over the corresponding period, which Hughes said was due largely to the recovery from the lingering effects of Hurricane Dean in 2007.
http://www.jamaicaobserver.com/news/...S_HIT_HARD.asp