Economy Grew 1.7 Per Cent Last Quarter

The economy grew by an estimated 1.7 per cent from October to December 2011 when compared with the corresponding period for 2010.

This performance brings estimated gross domestic product (GDP) growth for the 2011 calendar year to 1.5 per cent, representing the first annual increase in real GDP since 2007.

Director General of the Planning Institute of Jamaica (PIOJ), Dr. Gladstone Hutchinson, in giving a review of the quarter at a press conference held at his Oxford Road office recently, said that most industries recorded growth during the period.

There was positive out-turn in the goods producing industries, which registered an increase of 5.8 per cent, while the services industry recorded marginal expansion of  0.2 per cent.

All categories within the goods producing industry recorded growth, with agriculture registering the largest increase of 16.4 per cent, while mining and quarrying grew by 8.2 per cent, and manufacturing and construction, up 2.1 per cent and 1.0 per cent, respectively.

The services industry saw marginal expansion of 0.2 per cent, with all subcategories recording growth with the exception of finance and insurance services; and transport, storage and communication, which fell by 0.5 per cent and 2.4 per cent, respectively.

Turning to the outlook for the January to March 2012 quarter, Dr. Hutchinson said that the economy is expected to expand within the range of 0.5 to 1.5 per cent, with most industries expected to record growth.

“Agriculture, forestry and fishing and the wholesale and retail trade industries are expected to be the main drivers of growth during the forecast period,” he stated. 

He said the anticipated slowdown in the rate of growth from the December quarter “reflects the normalization of output levels in industries such as mining and quarrying, tourism and agriculture”.

Meanwhile, preliminary data reveal that the rate of inflation for January 2012 was 0.4 per cent. Total electricity generation declined by 1. 2 per cent, while total electricity sales went down by 5.9 per cent.

Tourist industry data for the month indicate that airport arrivals declined by

3.0 per cent,while cruise-ship passenger arrivals increased by 74.1 per cent to 167,745 passengers.

Total bauxite production declined by 1.1 per cent due to a 9.4 percent reduction in alumina production. Crude bauxite production increased by 3.7 per cent, while total bauxite exports increased by 4.8 percent, due to a 12.1 percent increase in crude bauxite exports. Alumina exports recorded a decline of 5.8 per cent.

By Allan Brooks, JIS Senior Reporter