Economy Grew in January to March Quarter

The Planning Institute of Jamaica (PIOJ) is reporting that the economy grew by an estimated 0.8 per cent during the January to March 2025 quarter, compared with the corresponding period in 2024.

Speaking at the PIOJ’s quarterly briefing on May 21, in Kingston, Director General, Dr. Wayne Henry, said the out-turn for the review quarter largely reflected the impact of continued growth momentum in some industries, following the adverse effects of hydrological events of 2024 and increased external demand, which was facilitated by continued growth in the economies of Jamaica’s main trading partners.

Dr. Henry further shared that increased employment and higher levels of consumer confidence, which drove domestic demand, also contributed to growth.

During the review period, the Goods Producing Industry grew by an estimated one per cent, driven by growth in all four sectors.

The Construction Industry grew by 1.5 per cent, reflecting growth in building construction and other construction components.

Dr. Henry advised that the performance of the building construction component was pushed by a 2,355.6 per cent growth in housing starts by the National Housing Trust (NHT).

“Cement supply to the industry increased by three per cent, reflecting a 164 per cent increase in imports. The estimated growth in the other constr uction component was due to increased capital expenditure on civil engineering activities by the National Works Agency, up 234.2 per cent to $1.3 billion, reflecting higher expenditure on the Southern Coastal Highway Improvement Project (SCHIP) and the Major Infrastructure Development Programme (MIDP),” he explained.

Real value added for the Manufacturing Industry was estimated to have grown by 1.4 per cent, due to estimated growth in the food, beverages, and tobacco sub-industry, and the other manufacturing sub-industry.

Meanwhile, output of the Agriculture, Forestry, and Fishing Industry was estimated to have remained relatively flat, with a 0.1 per cent increase in real value added.

“The industry’s performance reflected continued recovery, facilitated by favourable weather conditions and targeted assistance provided to farmers, which supported replanting efforts and facilitated higher levels of production, particularly for short-term crops. The performance during the quarter was due to higher productivity, reflected in an expansion in output per hectare for five of the nine crop groups,” he said.

Animal farming was also estimated to have declined by 1.5 per cent, reflecting lower production of eggs, down 20.5 per cent, which outweighed a 0.3 per cent increase in poultry meat production.

Real value added for the Mining and Quarrying Industry increased by an estimated 0.5 per cent, due to increased output of crude bauxite, which outweighed a decline in alumina production.