0.5 to 1.5 Per Cent Growth for December Quarter

The short term prospects for the economy are positive, with projected growth within the range of 0.5 per cent to 1.5 per cent for the October to December 2014 quarter.

Director General of the Planning Institute of Jamaica (PIOJ), Collin Bullock, said the economy is expected to recover from the drought conditions, which resulted in a 0.8 per cent contraction in Gross Domestic Product (GDP) during the July to September quarter.

The reduction followed four previous consecutive quarters of growth.

Mr. Bullock, who was addressing the institute’s quarterly media briefing held on November 19 at its Oxford Road premises in Kingston, said the positive economic outlook is based on preliminary data, which shows growth in some key sectors.

“Most industries are expected to grow with the agriculture and hotels and restaurants industries projected to record the strongest growth,” Mr. Bullock said.

Preliminary data for tourism is showing a 9.8 per cent increase in stopover arrivals for October and a near 18.8 per cent increase in cruise passenger arrivals for the same period.

The agriculture, forestry and fishing industry is also expected to rebound, due to the recovery of crops affected by drought conditions over the June to July period.

Mr. Bullock noted that the continued implementation of major growth-inducing projects and strengthened investor confidence as a result of the successful completion of the sixth review by the International Monetary Fund (IMF) should also have a positive impact on economic growth.

He said that growth for the calendar year and 2014/15 fiscal year is also projected at 0.5 to 1.5 per cent.