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Jamaica's GDP falling
Mining and Quarrying only sector to record rise
BY JULIAN RICHARDSON richardsonj@jamaicaobserver.com
Wednesday, August 25, 2010
THE Planning Association of Jamaica estimates that real gross domestic product (GDP) during the June quarter contracted by an estimate of 0.8 per cent relative to the corresponding period last year, with the goods producing and services industry declining by 1.6 per cent and 0.9 per cent respectively.
According to the PIOJ, aside from Mining and Quarrying which grew by 4.3 per cent, all categories within the goods producing industry declined over the quarter. Agriculture was hit hardest with a 3.5 per cent decline, catalysed by a sharp fallout in Traditional Export crops. The Manufacturer and Construction sectors fell by 1.6 per cent and 1.5 per cent respectively.
All categories within the services industry declined, with the greatest decline posted by the Finance and Insurance Services sector, down by two per cent against the background of the Jamaica Debt Exchange which resulted in a reduction in interest income for many financial institutions, foreign exchange losses due to the appreciation of the Jamaican dollar and a reduction in the stock of commercial bank loans and advances. The Hotels and Restaurants sector was down by 1.6 per cent, attributed to a 5.4 per cent falloff in total arrivals and a 13.4 per cent decline in cruise visitor arrivals. Electricity and Water Supplies posted a 1.5 per cent decline.
“The declines recorded during the quarter reflects the impact of the lagged effects of the global recession on the local economy, the lingering effects of the drought conditions on agriculture output and police operations on the business activities in sections of Kingston and St Catherine and as far away as farm communities in St Elizabeth, St Thomas and Portland, as well as international travel” said newly appointed PIOJ director-general Gladstone Hutchinson at a press briefing today.
Mining and Quarrying only sector to record rise
BY JULIAN RICHARDSON richardsonj@jamaicaobserver.com
Wednesday, August 25, 2010
THE Planning Association of Jamaica estimates that real gross domestic product (GDP) during the June quarter contracted by an estimate of 0.8 per cent relative to the corresponding period last year, with the goods producing and services industry declining by 1.6 per cent and 0.9 per cent respectively.
According to the PIOJ, aside from Mining and Quarrying which grew by 4.3 per cent, all categories within the goods producing industry declined over the quarter. Agriculture was hit hardest with a 3.5 per cent decline, catalysed by a sharp fallout in Traditional Export crops. The Manufacturer and Construction sectors fell by 1.6 per cent and 1.5 per cent respectively.
All categories within the services industry declined, with the greatest decline posted by the Finance and Insurance Services sector, down by two per cent against the background of the Jamaica Debt Exchange which resulted in a reduction in interest income for many financial institutions, foreign exchange losses due to the appreciation of the Jamaican dollar and a reduction in the stock of commercial bank loans and advances. The Hotels and Restaurants sector was down by 1.6 per cent, attributed to a 5.4 per cent falloff in total arrivals and a 13.4 per cent decline in cruise visitor arrivals. Electricity and Water Supplies posted a 1.5 per cent decline.
“The declines recorded during the quarter reflects the impact of the lagged effects of the global recession on the local economy, the lingering effects of the drought conditions on agriculture output and police operations on the business activities in sections of Kingston and St Catherine and as far away as farm communities in St Elizabeth, St Thomas and Portland, as well as international travel” said newly appointed PIOJ director-general Gladstone Hutchinson at a press briefing today.
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