The Jamaican economy is estimated to have contracted by nearly three percent for the July to September period, with mixed prospects for the remainder of the year.
That’s according to the latest information provided by the Planning Institute of Jamaica, PIOJ, at their quarterly media briefing on Wednesday.
The downturn largely reflected the impact of Hurricane Beryl, with further weather phenomena and a poor performances in key industries, making this one of the toughest economic years faced by the country since COVID-19.
Chevon Campbell tells us more.
After nearly thirteen quarters of unbroken economic gains, the damage caused by the passage of Hurricane Beryl in July has now been quantified.
According to PIOJ Director General, Dr. Wayne Henry, the Category Four storm cost the country three percent of GDP, or over thirty billion dollars.
Agriculture was the hardest hit, falling by more than 13 percent.
Thirteen of the fourteen parishes showed a decline in hectares reaped.
Another major growth industry, mining and quarrying, also declined over the period by upwards of fifteen percent.
Overall, the good-producing industries declined by more than six percent, with all sectors contracting.
The services industries were not spared the downturn, with all but one declining for the period.
Overall, the services fell by 1.2%.
However, even prior to the passage of hurricane Beryl, the economy showed signs of slowing, recording a contraction of zero-point-six percent from January to September.
According to Dr. Henry, the short-term prospects for the country are also poor.
Meanwhile, there’s an expectation of many industries to recover over the next few quarters; key areas are still anticipated to lag behind, including tourism.
This means the economy will contract for the fiscal and calendar years.
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