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Economy to grow 1% by October
BOJ project growth for next three months
BY CAMILO THAME Business co-ordinator thamec@jamaicaobserver.com
Thursday, August 12, 2010
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THE Bank of Jamaica (BOJ) today projected that the economy will grow by as much as one per cent during the three months September 30, while the central bank says that inflation for the period will likely be less than in the June quarter.
“Jamaica’s output is projected to expand within a range of 0.0 per cent to 1.0 per cent in the September 2010 quarter, which would be the first expansion since the September 2007 quarter,” said the BOJ’s quarterly monetary policy report released today. "This improved performance should emanate mainly from agriculture, forestry and fishing, mining and quarrying, transport, storage and communication and electricity and water supply.”
The growth in agriculture is expected to be at a slower pace than the average quarterly growth recorded since March 2009, but is based in improvement in output expected from domestic agriculture.
The ancicipated improvement in output from mining and quarrying reflects expected increase in the capacity utilisation of the Noranda Bauxite Company to approximately 96.7 per cent relative to 77.8 per cent in the September 2009 quarter.
Domestic cargo movements by water and increased activity at the island’s ports should result in increased output from the transport sector, but manufacture and wholesale and retail trade, repair and installation of machinery are expected to record declines consistent with continued weak demand.
At the same time, the BOJ is forecasting inflation for the September 2010 quarter will fall in the range of 1.5 per cent to 2.5 per cent, which would be below the 2.6 per cent inflation rate recorded in the June 2010 quarter.
BOJ project growth for next three months
BY CAMILO THAME Business co-ordinator thamec@jamaicaobserver.com
Thursday, August 12, 2010
var addthis_pub="jamaicaobserver";
THE Bank of Jamaica (BOJ) today projected that the economy will grow by as much as one per cent during the three months September 30, while the central bank says that inflation for the period will likely be less than in the June quarter.
“Jamaica’s output is projected to expand within a range of 0.0 per cent to 1.0 per cent in the September 2010 quarter, which would be the first expansion since the September 2007 quarter,” said the BOJ’s quarterly monetary policy report released today. "This improved performance should emanate mainly from agriculture, forestry and fishing, mining and quarrying, transport, storage and communication and electricity and water supply.”
The growth in agriculture is expected to be at a slower pace than the average quarterly growth recorded since March 2009, but is based in improvement in output expected from domestic agriculture.
The ancicipated improvement in output from mining and quarrying reflects expected increase in the capacity utilisation of the Noranda Bauxite Company to approximately 96.7 per cent relative to 77.8 per cent in the September 2009 quarter.
Domestic cargo movements by water and increased activity at the island’s ports should result in increased output from the transport sector, but manufacture and wholesale and retail trade, repair and installation of machinery are expected to record declines consistent with continued weak demand.
At the same time, the BOJ is forecasting inflation for the September 2010 quarter will fall in the range of 1.5 per cent to 2.5 per cent, which would be below the 2.6 per cent inflation rate recorded in the June 2010 quarter.
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