Hurricane Beryl Causes Decline in Economic Activity for July-September

The adverse impact of Hurricane Beryl and other hydrological events caused a contraction in the economy during the July to September quarter, the Planning Institute of Jamaica (PIOJ) reports.
Economic activity declined by an estimated 2.8 per cent compared with the corresponding period in 2023.

Speaking during the agency’s recent quarterly briefing, Director General, Dr. Wayne Henry, said the downturn was due to an estimated contraction in both the goods producing and services industries, pointing out that the industries that suffered the greatest impact from the hurricane were agriculture, forestry and fishing; mining and quarrying; hotels and restaurants; and electricity and water production.

“Domestic crop production was severely affected, with 13 of 14 parishes recording a decline in hectares reaped during the review quarter,” Dr. Henry said.

Hurricane Beryl also caused infrastructural damage to the port at Rocky Point in Clarendon.

He said the cancellation of flights and diversion of visitors to alternative destinations adversely affected the performance of hotels and restaurants.

Dr. Henry shared that the electricity and water production industry experienced significant damage and loss as a result of the destruction to infrastructure assets caused by Hurricane Beryl.

“Sections of the island were negatively impacted by the delays in restoring electricity, which had implications for production in other industries,” he said.

Dr. Henry indicated that the transport, storage and communication industry was impacted by the closure of Jamaica’s international airports and aerodromes and the consequential temporary cessation of travel to the island, damage to the telecommunications systems, limited internet and phone access.

“Other factors impacting performance included weakened demand, which resulted in the curtailment of economic activities,” Dr. Henry said.