Bank of Jamaica predicts continued economic growth as unemployment continues to fall

Jamaica’s macroeconomic prospects “remain positive as the indicators and outputs continue to show signs of recovery”, the Bank of Jamaica (BOJ) Governor, Brian Wynter, has said.

“Foreign reserves are above the level deemed adequate and the current account deficit remains low and sustainable. Additionally, market interest rates are at historic lows and fiscal performance continues to be strong.”

Wynter said that other notable indicators include improving labor market conditions, which saw the unemployment rate falling to 8.7 percent as at October 2018 from 10.4 percent a year earlier, as stated by the Statistical Institute of Jamaica in the Labor Force Survey for the month.

He said that growth for the October to December 2018 quarter is estimated to have accelerated in the range of 1.5 to 2.5 percent, rising above the 1.2 percent recorded in December 2017.

“The Bank of Jamaica assesses that this pace of growth reflected improvements in external demand, investment and, to a lesser extent, private consumption. The key economic sectors reflecting increased economic activity included mining and quarrying, construction and tourism,” the Governor noted, adding that the BOJ projections are for growth to remain close to current rates over the next 2 years.

Additionally, he said further improvements in labor market conditions are expected over the same period, “with more jobs in mining and quarrying, finance and insurance, and business process outsourcing.

“Overall, Jamaica’s macroeconomic indicators continue to reflect entrenched stability, although the economy is estimated to be operating below its potential.” -(CMC)