Business
Jamaica: All major indices point to positive economic growth in 2011
(Jamaica Gleaner) – Jamaica’s economy recorded growth of 1.5 percent in 2011 – the first annual expansion in real gross domestic product (GDP) recorded since 2007. This was driven largely by a boost in demand for bauxite and alumina as well as better weather conditions which drove improved performance in the agricultural sector.
For the fourth quarter, October to December 2011, the economy is estimated to have expanded by 1.7 percent compared with the corresponding period in 2010, the Planning Institute of Jamaica (PIOJ) reported Thursday.
During the three-month period reported above, the goods-producing sector grew by 5.8 percent, while the services industry expanded by 0.2 percent, PIOJ Director General Dr Gladstone Hutchinson said, while reviewing the economy’s performance at the institute’s New Kingston offices.
All industries recorded growth in the goods-producing sector during the review period, with agriculture, forestry and fishing evidencing the strongest increase of 16.4 percent.
Growth in agriculture reflected a 28.9 percent improvement in ‘other agricultural crops’, as well as recovery relative to the corresponding period in 2010 when performance was negatively affected by the impact of Tropical Storm Nicole in September that year, in addition to the global recession.
Mining and quarrying was up 8.2 percent, driven by higher production of alumina and crude bauxite of 6.4 percent and 18 percent respectively, “largely reflecting the continued impact of the reopening of the Windalco Ewarton Alumina Plant – in St Catherine, and increased bauxite production by Noranda Bauxite Company in St Ann,” Dr Hutchinson said.
Real value-added in the manufacturing industry grew by 2.1 percent due to increases in food, beverages and tobacco, up 1.8 percent, and ‘other manufacture’, which increased by 2.5 percent.
The rise in ‘other manufacture’ was influenced mainly by a boost in petroleum and chemical production. “The increased petroleum production should be viewed against lower production in the corresponding period of 2010, as the refinery was not fully operational for the entire quarter,” the PIOJ director general said.
Dr Hutchinson said construction grew 1 percent during the quarter, attributable mainly to road projects being executed under the Jamaica Development Infrastructure Programme (JDIP), in addition to the Palisadoes roadway and the Sandy Bay to May Pen phase of Highway 2000.
Also contributing to growth in the construction sector was expansion in residential construction activity, influenced primarily by a 152.7 percent increase in housing starts.
Hutchinson reported that all industries within the services sector, except finance and insurance which decreased by 0.5 percent, and transport, storage and communication, down 2.4 percent, recorded growth.
The decline in the transport and storage component reflected the impact of the final transfer of Air Jamaica assets to Caribbean Airlines in July 2011.
Within the services sector, the largest increase was electricity and water supply, up 3.4 percent.
For calendar year 2011, the sectors contributing most to the overall 1.5 percent growth were mining and quarrying, up 20.2 percent, and agriculture, forestry and fishing, up 11 percent.
For the month of January 2012, bauxite production declined by 1.1 percent, reflecting the combined effect of a 9.4 percent decrease in aluminium production and a 3.7 percent growth in crude bauxite production.
During the same period, electricity generation and sales decreased by 1.2 percent and 5.9 percent, respectively, Dr Hutchinson said. The decline in electricity sales to residential customers reflected increased efforts at conservation by those consumers, he added.
For January, airport arrivals decreased by 3 percent, but cruise passenger arrivals increased by 74.1 percent, he said.
The PIOJ is projecting growth in the range of 0.5 to 1.5 percent for the period January to March.