The International Monetary Fund, IMF, has downgraded its 2014 growth projection for Jamaica in its latest World Economic Outlook report.
According to the October report, Jamaica’s economy is now expected to record growth of one percent this year, down from the almost 1-point-3 percent that was projected in its April report.
The long period of drought experienced during the summer months is among the factors highlighted as a reason for the downgrade.
However, the IMF is projecting growth for the Jamaican economy of 1-point-7 percent for 2015.
The October report also says economic growth in Latin America and the Caribbean slowed in the early parts of this year.
It says growth in the region is expected to average 1-point-3 percent for 2014, the lowest rate since 2009.
In its Economic Outlook for 2014 released yesterday, the Fund noted that external conditions influenced slower growth, as exports fell short of expectations in the first half of this year.
It says there was also a deterioration in the terms of trade for some countries.
In the Caribbean, the IMF says long-standing competitiveness problems, high public debt, and significant financial fragilities will result in low growth in much of the region.
But, the multilateral is predicting that regional growth will improve to 2-point-2 percent next year although that projection is point-7 percentage points weaker than previously projected.
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