PIOJ Head Optimistic Country will Recover

Director General of the Planning Institute of Jamaica (PIOJ), Dr. Wayne Henry, is optimistic that the economy will recover from setbacks caused by flood rains between March and June this year, to generate higher growth than the 0.3 per cent out-turn recorded for the April to June quarter.

Speaking at the PIOJ’s quarterly media briefing at the agency’s New Kingston head office on August 30, Dr. Henry said the country’s ability to generate potentially higher first-quarter growth for the 2017/18 fiscal year was severely restricted by the adverse weather conditions.

He noted that the preliminary cost of damage and losses incurred was $4 billion or 0.2 per cent of Jamaica’s 2016 gross domestic product (GDP), which negatively impacted the performance of key sectors, including agriculture, forestry and fishing; mining and quarrying; and electricity and water supply

Mining and quarrying, and agriculture, forestry and fishing, which fall under the goods producing sector, contracted by 10.5 and 8.5 per cent, respectively. Electricity and water supply, which fall under the services industry, recorded modest growth of 0.3 per cent.

Dr. Henry said the damage to public infrastructure, inclusive of roads and bridges, was approximately $3 billion, with water supply and other related systems accounting for another $105.8 million.

He told journalists that agriculture, forestry and fishing suffered dislocation totalling $814.9 million.

However, Dr. Henry said despite a slowing down in the growth rate over the last two quarters due to weather-related shocks, “it is anticipated that for the remainder of the fiscal year, there will be a strengthening in the pace of growth, resulting in a fiscal-year out-turn within the range of two to three per cent”.