PIOJ Says Growth Could Reach 3% in 2015/16

The Planning Institute of Jamaica (PIOJ) has indicated that over the next fiscal year, there is significant potential for growth beyond what is projected under the Government’s Extended Fund Facility with the International Monetary Fund (IMF).

According to the PIOJ, while the Gross Domestic Product (GDP) growth target is 1.5 to 2 per cent, there is prospect for up to 3 per cent growth for 2015/16.

Minister of Finance and Planning, Dr. the Hon.  Peter Phillips, made the disclosure  on Wednesday, September 17, at a post-Cabinet retreat press briefing, hosted by Information Minister, Senator the Hon. Sandrea Falconer, at Jamaica House.

The projection is based on identified projects in sectors such as tourism and energy. “The PIOJ also identified a series of projects beyond those for the next fiscal year, in areas of integrated resort development, port and infrastructure, ICT, which along with anticipated developments in relation to the medium and small enterprise sector and the provisions for additional venture capital, would see even greater potential in the subsequent fiscal year (2016/17),” he outlined.

Dr.  Phillips further informed that the anticipated reduction in electricity costs, which is anticipated to get underway before 2017, will further complement the country’s capacity for growth, particularly in relation to benefits to the manufacturing sector.

He noted that the work of the Electricity Sector Enterprise Team (ESET), which presented an update on Jamaica’s baseload capacity to Cabinet during the retreat, is therefore vital to the process.

The Cabinet met from Monday, September 15 to Tuesday, September 16, to discuss the Government’s growth strategy, the energy sector, fiscal policy, and the budget calendar for the upcoming fiscal year.