PIOJ Outlook for Jamaica’s Short to Medium-Term Economic Prospects Positive

Director General of the Planning Institute of Jamaica (PIOJ), Dr. Wayne Henry, says the country’s economic prospects over the short to medium term are positive.

Speaking during the PIOJ’s quarterly media briefing on Wednesday (February 21), Dr. Henry said this outlook is consequent on the continued growth in the economies of Jamaica’s main trading partners, which augurs well for increased external demand in areas like tourism.

He noted that there is also higher demand stemming from increased employment levels and economic activities.

This, the Director General added, as firms continue to invest to meet higher domestic and external demand, particularly within the Hotels and Restaurants, and Manufacturing industries.

“The Hotels and Restaurants industry is expected to continue to record growth. Preliminary data on airport arrivals for January 2024 indicate an increase of 2.3 per cent, relative to January 2023,” Dr. Henry informed.

He advised that the downside risks to this positive outlook include plant downtime due to relatively aged equipment in major industries, adverse weather conditions, and weaker than projected growth in the economies of Jamaica’s main trading partners, which may temper the external demand for local goods and services.

“Within this context, economic growth is anticipated for the remainder of fiscal year 2023/24. For the January to March 2024 quarter, growth is projected to be within the range of 1.5 per cent to 2.5 per cent, resulting in a fiscal year growth, that is, April 2023 to March 2024, in the range of 1.5 per cent to 2.5 per cent,” Dr. Henry stated.