The Bank of Jamaica (BOJ) says its projected growth rate in the economy could be impacted by the postponement of major infrastructural projects and adverse weather conditions.
The BOJ in its quarterly monetary policy report for December 2015 says the rate of growth is expected to improve within the range of 1-to 2-percent this year compared to last year’s rate of 0.8-percent.
But the central bank says other issues such as a slower growth in the economies of Jamaica’s main trading partners and lower than anticipated business and consumer confidence, could adversely impact projections.
However, the central bank is signalling that growth in the economy could be stronger than projected if some construction projects get underway earlier than anticipated.
BOJ says a faster expansion in the global economy could have a positive impact on growth as well.
The agricultural sector, construction, forestry and fishing in addition to manufacturing, electricity, water supply, hotels and restaurants are expected to be the major contributors to this year’s growth output.
The BOJ says growth in Agriculture, Forestry and Fishing should reflect a recovery in domestic crop production following two consecutive years of severe drought conditions plus the increased cultivation under the Government’s Agro-Parks initiative.
Manufacturing is expected to be buoyed primarily by expansions in agro-processing, food and beverages as well as refined petroleum production.
Construction is expected to benefit from on-going major infrastructural projects, including improvements in Jamaica’s energy infrastructure.