Economy Grew by Estimated 1.9 Per Cent During March 2024 Quarter

The Planning Institute of Jamaica (PIOJ) is reporting that the economy grew by an estimated 1.9 per cent during the January to March 2024 quarter.

Speaking during the PIOJ’s quarterly briefing on Tuesday (May 28), Senior Director in the Economic Planning and Research Division, James Stewart, said the outturn represents the 12th consecutive quarter of growth.

The performance for the review period largely reflected the impact of increased external demand, higher levels of business and consumer confidence, increased agricultural output and continued expansion in capacity utilisation at alumina refineries.

Mr. Stewart indicated that further growth in the economy was tempered by a contraction in the construction industry.

Regarding real-sector developments, the goods producing industry grew by an estimated three per cent, driven by improved performances in three of the four industries – agriculture, forestry and fishing, mining and quarrying, and manufacturing.

“Output of the agriculture, forestry and fishing industry was estimated to have increased by 7.7 per cent. The industry’s performance reflected the impact of favourable weather conditions, facilitated by higher levels of production, relative to the corresponding quarter of 2023 when the industry was negatively impacted by drought conditions,” Mr. Stewart said.

He noted that the performance during the quarter was spurred by greater productivity, as reflected in a 4.7 per cent expansion in output per hectare.

“The group ‘Other Agricultural Crops’ was estimated to have grown by 10.5 per cent, reflecting increased production in all nine crop groups,” the Senior Director indicated.

Mr. Stewart informed that the mining and quarrying sector was estimated to have grown by 24.8 per cent, due to increased output of alumina and crude bauxite.

He said alumina production was 27.8 per cent higher as a result of increased demand, while crude bauxite production rose by 4.6 per cent.

Regarding manufacturing, Mr. Stewart advised that the industry grew by two per cent, due to estimated growth in the ‘Food, Beverages and Tobacco’ and ‘Other Manufacturing’ sub-industries.

“Higher output was recorded for the ‘Food Processing’ component, largely due to bakery products, up eight per cent; dairy products, up 1.9 per cent; and poultry meat, up 2.3 per cent. Further expansion of the ‘Food, Beverages and Tobacco’ sub-industry was tempered by lower production of sugar, down 15.1 per cent, and beer, down 16.7 per cent,” he detailed.

Meanwhile, real value added for the construction industry fell by 4.5 per cent, reflecting a downturn in the ‘Building Construction’ component, which outweighed an estimated growth in the ‘Other Construction’ component.

Mr. Stewart explained that the performance of the ‘Building Construction’ component was constrained by a 56.5 per cent contraction in housing starts by the National Housing Trust (NHT).

Preliminary sales data further revealed a 10.8 per cent decline in the real sales of construction inputs, primarily hardware, paint and glass, which fell by 12 per cent.

“The estimated growth in the ‘Other Construction’ component was due to increased capital expenditure on civil engineering activities by the National Road Operating and Constructing Company (NROCC), up 609.2 per cent to $5.1 billion, due largely to expenditure on the Montego Bay Perimeter Road, and the Jamaica Public Service Company, up 38.7 per cent to $1.6 billion, due to construction and installation activities related to the transmission and distribution of electricity,” Mr. Stewart stated.