Tweet
Jamaican incomes fall 17 per cent
PAYE declines suggest falling spending power
BY CAMILO THAME Business co-ordinator thamec@jamaicaobserver.com
Thursday, August 12, 2010
JAMAICAN income levels may be down by as much as 17 per cent, according to new data released by the Bank of Jamaica (BOJ), while consumer spending up to June this year trailed behind year-earlier levels by at least 10 per cent.
“Since February 2009 there has been a declining trend in PAYE, a proxy for wages,” said the BOJ’s quarterly monetary policy report for June 2010, which was released today. “Over the 12-month period ending May 2010, PAYE declined by 16.6 per cent, indicating a decline in the spending power of salaried workers.”
Observer calculations show that PAYE collections in June 2010, according to data provided by the Ministry of Finance, was 8.1 per cent lower than year-earlier levels, while collections for the 12-month period to June fell 6.5 per cent compared to the corresponding period last year.
Lower spending power of consumers translated into lower levels of consumption and investment, according to BOJ estimates of the expenditure.
Private consumption during the three months ending June 30 was lower compared to the comparative period in 2009 by 10.6 per cent, using collection in real consumption tax receipts as a proxy, and could have declined by as much as 16.1 per cent, should the reduction total imports of goods and services be used to determine consumption levels.
PAYE declines suggest falling spending power
BY CAMILO THAME Business co-ordinator thamec@jamaicaobserver.com
Thursday, August 12, 2010
JAMAICAN income levels may be down by as much as 17 per cent, according to new data released by the Bank of Jamaica (BOJ), while consumer spending up to June this year trailed behind year-earlier levels by at least 10 per cent.
“Since February 2009 there has been a declining trend in PAYE, a proxy for wages,” said the BOJ’s quarterly monetary policy report for June 2010, which was released today. “Over the 12-month period ending May 2010, PAYE declined by 16.6 per cent, indicating a decline in the spending power of salaried workers.”
Observer calculations show that PAYE collections in June 2010, according to data provided by the Ministry of Finance, was 8.1 per cent lower than year-earlier levels, while collections for the 12-month period to June fell 6.5 per cent compared to the corresponding period last year.
Lower spending power of consumers translated into lower levels of consumption and investment, according to BOJ estimates of the expenditure.
Private consumption during the three months ending June 30 was lower compared to the comparative period in 2009 by 10.6 per cent, using collection in real consumption tax receipts as a proxy, and could have declined by as much as 16.1 per cent, should the reduction total imports of goods and services be used to determine consumption levels.
Comment