Economic Stability Significant Achievement – BOJ Governor

KINGSTON — Governor of the Bank of Jamaica, Brian Wynter, says while it is early days for the productive sectors to reflect strong growth momentum, the return to economic stability along with conditions conducive to positive growth, is a significant achievement.

Mr. Wynter was responding to questions following his presentation at a Luncheon Forum of the Jamaica Chamber of Commerce (JCC), in Kingston, on September 13.

"There is a lag…while we have returned to a period of positive growth in the March and June quarters, that growth is modest at 1.5 and 1.4 percent…that is significantly better than the decline we have experienced over the previous 13 quarters," he explained.

While admitting that the pace of growth was modest, he observed that the numbers point to strong growth in particular sectors such as tourism, agriculture and mining. In addition he said  there were "anecdotal signs" with respect to interest rates and renewed interest in investments in the real economy.

Illustrating the point, Mr. Wynter recounted a recent encounter he had with a small businessman. "It is unusual in Jamaica to run into a man talking excitedly about his relationship with his bank. He actually set up one bank against another. He asked a few questions, pushed (the negotiation) a little further and he got the results. By results, I mean he got dramatic improvement in the interest rate he was paying. In Jamaican dollars, at that time, about a couple months ago, he got a rate of just above 11 per cent. He was extremely thrilled," he said.

The Governor described that meeting as reflective of an excited businessmen, motivated to invest expand his business and employ more people.

With respect to the status of the country's Standby Agreement with the International Monetary Fund (IMF), the Central Bank Governor opined that the IMF programme was not off track. He drew attention to a Planning Institute of Jamaica (PIOJ) matrix which indicated that 95 per cent of what had been agreed with the Fund, had been completed.

He further explained that no IMF programme, here or elsewhere, ever had full compliance, as there were always delays or the need for changes.

By Allan Brooks, JIS Reporter