• The Global Digital Services Sector (GDSS) accounts for approximately 70% of businesses operating in the special economic zones (SEZs), making it the largest stakeholder group. This information was shared by Chief Executive Officer (CEO) at the Jamaica Special Economic Zone Authority (JSEZA), Kelli-Dawn Hamilton at a recent Jamaica Information Service (JIS) ‘Think Tank’.
• Hamilton highlighted that while the Authority has many roles to fulfil, a major focus is being placed on the GDSS, particularly relating to business process outsourcing entities. It was also highlighted that JSEZA has been collaborating with the Global Services Association of Jamaica (GSAJ) to ensure competitiveness.
• Topics such as artificial intelligence, metaverse, developments affecting the Internet of Things, Big Data, robotic process automation, and logistics will be discussed during the Outsource2Jamaica Conference slated for May 10 and 11 at the Jewels Grande Montego Bay. The conference will be held under the theme ‘Ahead of the Curve’.
• The BPO sector is regarded as one of the fastest-growing sectors and is important to the Jamaican economy because of its ability to provide sustainable jobs. Moreover, the sector has been pumping roughly US$890Mn (J$136Bn) into the Jamaica economy annually, which is equivalent to around 6% of GDP.
• The Special Economic Zone Authority will continue to discuss with the GSAJ, Port Authority of Jamaica, and Jamaica Promotions Corporation (JAMPRO) the next step for Jamaica to remain competitive in the global space as the shift to digital services continues.

(Source: JIS News)

• Local investors and manufacturers, particularly those in agro-processing, are being encouraged to capitalize on the benefits to be derived from the recently launched hot pepper value chain project.
• The initiative, titled ‘Improving Phytosanitary, Food Safety and Market Access Opportunities along the Hot Pepper Value Chain in Jamaica,’ evolved from a strategic collaboration with the United Nations Food and Agriculture Organization (FAO) and the Jamaican Government through the World Trade Organization (WTO) Standard and Trade Development Facility (STDF).
• It aims to strengthen Jamaica’s international competitiveness in the hot pepper industry and stakeholders’ technical and resource capabilities to have consistent local and international market access. Additionally, the project seeks to support sustainable and resilient practices within the sector. Minister of Industry, Investment and Commerce, Senator the Hon. Aubyn Hill noted that the project will result in greater market access and expanded trade.
• Referencing an FAO report, the Minister said data over the past five years indicate a 39 per cent growth in local production levels within the sector.
• Consequently, Senator Hill noted that all stakeholders must continuously seek to capitalize on market access opportunities and meet product demand, to maximize local exports and grow Jamaica’s economy.

(Source: JIS News)

• The average price of food and non-alcoholic beverages increased by 12.99% between March 2022 and March 2023, according to Guardian Media calculations of data published by the Central Statistical Office (CSO) on Sunday. This is lower than the 14.04% registered between February 2022 and February 2023, an indication of an easing in the increase in prices of food and non-alcoholic beverages.
• For the period March 2022 to March 2023, headline inflation was 7.34%; down from the 7.60% recorded in February and the 8.3% in January (year-over-year). Additionally, the food and non-alcoholic beverages decreased from 147.8 points in February 2023 to 146.1 points in March 2023, reflecting a decline of 1.2%.
• The general downward movement in the prices of pumpkin, tomatoes, melon, hot peppers, cabbage, melongene, carrots, pimento, celery, and parboiled rice, contributed significantly to the decline.
• However, this was offset by the general increases in the prices of chilled or frozen beef, fresh beef, chilled or frozen pork, cucumber, onions, oranges, table margarine, grapes, corn, and plantains.
• As inflation continues to become more palatable for consumers (CPI 2023: 4.8% y-o-y), Fitch Solutions expects that the Central Bank of Trinidad & Tobago will continue to leave its policy rate unchanged at 3.5% for the remainder of the year. This is in an effort to support borrowing and the continued post-pandemic economic recovery.

 (Sources: Trinidad and Tobago Guardian & Fitch Solutions)

• Brazil's government announced a package of 13 measures last Thursday to ease consumer access to credit and reduce associated costs in the capital and insurance markets, a move the new leftist administration hopes will boost investment and revitalize a slowing economy.
• Among the measures is the federal government's proposal to provide counter-guarantees for public-private partnership projects at the state and municipal levels. Additionally, the package includes a decree to allow the issuance of bonds with an income tax exemption for investments in sectors such as healthcare, education, and public security.
• According to Treasury Secretary Rogerio Ceron, the move is expected to mitigate financial and political risks seen by private investors, especially foreign ones, attracting funding for projects such as the construction of daycare centres and sanitation facilities, which are dear to the new government of President Luiz Inacio Lula da Silva.
• During a news conference, he announced that the Inter-American Development Bank (IDB) had confirmed the availability of credit lines for operations within this framework. These credit lines are being assessed by development bank BNDES (The National Bank for Economic and Social Development), state-owned Banco do Brasil, and other private lenders.
• Brazil's Secretary of Economic Reforms, Marcos Barbosa, said the measures aim to strengthen the credit market in the long term, paving the way for the country's capital market to become as robust or larger than the $US988Bn banking market.

(Source: Reuters)

• The emerging-markets bloc of Brazil, Russia, India, China and South Africa will meet in Cape Town on June 2-3 to discuss its enlargement, Anil Sooklal, South Africa's ambassador to the group, said in an interview in the city on Monday.
• "What will be discussed is the expansion of BRICS and the modalities of how this will happen," he said. "Thirteen countries have formally asked to join, and another six have asked informally. We are getting applications to join every day."
• China initiated the conversation about expansion when it was BRICS chair last year, as the world's second-biggest economy tries to build diplomatic clout to counter the dominance of developed countries in the United Nations. The proposed enlargement triggered concern among other members that their influence will be diluted, especially if Beijing's close allies are admitted. China's gross domestic product is more than twice the size of all four other Brics members combined.
• The foreign ministers from the five member states have all confirmed they'll attend the discussions in June, Sooklal said. In addition to its membership, they will also discuss "hot spots" including Sudan, where a conflict between the army and a paramilitary force continued for a 10th day on Monday.
• One of the most significant objectives the BRICS nations appear to be working to achieve is a shift away from reliance on the US dollar. Even before the outbreak of war in Ukraine, Russia and China had embarked on clear policies of local-currency promotion, invariably at the dollar’s expense. With more countries anticipated to join the alliance, this could destabilize the dollar as the currency of choice, especially in international trade negotiations.

(Source: The Business Standard)

• Growth in the U.S. slowed considerably during the first three months of the year as interest rate increases and inflation took hold of an economy largely expected to decelerate even further ahead.
• Gross domestic product, a measure of all goods and services produced for the period, rose at a 1.1% annualized pace in the first quarter, the Commerce Department reported Thursday. Economists surveyed by Dow Jones had been expecting growth of 2%. The growth rate followed a fourth quarter in which GDP climbed 2.6%, part of a year that saw a 2.1% increase.
• The outturn in Q1 2023 came on the back of an acceleration in consumer spending, which was offset by businesses cutting back on inventory investment in anticipation of weaker demand this year amid higher borrowing costs.
• The report showed that the personal consumption expenditures price index, an inflation measure that the Federal Reserve follows closely, increased by 4.2%, ahead of the 3.7% estimate. Stripping out food and energy, core PCE rose 4.9%, compared to the previous increase of 4.4%.
• While the economy was not in recession last quarter, the outlook is darkening. Credit conditions have tightened following recent financial market turmoil, which, together with the Federal Reserve's fastest rate hiking cycle since the 1980s, have raised the risks of a downturn by the second half of the year.

(Sources: CNBC & Reuters)

• Tourism Minister, Hon. Edmund Bartlett, says the cruise industry is recovering strongly, following a lull due to the COVID-19 pandemic. Speaking at a destination assurance meeting in Ocho Rios, St. Ann, on April 20, Mr. Bartlett said Jamaica continues to see an uptick in cruise passenger arrivals, with approximately 855,000 visiting in 2022 and further indicated that 1.4 million passengers are projected to arrive during the current calendar year.
• The Minister said cruise lines have further demonstrated their confidence in Jamaica by recruiting approximately 10,000 Jamaicans to work on ships overseas in 2022. He highlighted that based on d discussions, with the executives of major cruise lines, Jamaica remains a first-call destination on their list, and should be seeing increased activity over the coming months.
• The cruise subsector is rapidly growing and becoming a viral component of the global tourism industry owing to pent-up demand. That said, the Royal Caribbean International (RCI) has committed to increasing the number of passengers brought to Jamaica in 2023 while strengthening its training partnership with the Caribbean Maritime University (CMU).
• The growth of cruise tourism in Jamaica presents a significant opportunity to drive the resurgence of the tourism industry, create employment opportunities, and contribute to economic growth in FY2023/24.

(Source: JIS News)

• The National Export-Import (EXIM) Bank has approved and disbursed loans valued at some $1.89 billion to 293 beneficiaries in the small and medium-sized tourism enterprise (SMTE) sector.
• Minister of Tourism, Hon. Edmund Bartlett, made the disclosure while opening the 2023/24 Sectoral Debate in the House of Representatives on Tuesday (April 18). The loans, arranged by the Tourism Enhancement Fund (TEF), are facilitated by the EXIM Bank so that business operators in the sector and Linkages Network have adequate access to financing of up to $25 million.
• “Small hoteliers, the person with a little Airbnb, can come and borrow at the lowest interest rate at the time of 4.5 per cent over five years. They can go and refurbish their places so that they can be asserted properly in the value chain of tourism,” Mr. Bartlett said.
• Meanwhile, the Minister said 437 beneficiaries, to date, have received financing valued at some $983 million, through the Jamaica National Small Business Loans Limited.
• Medium, small, and micro enterprises (MSMEs) are essential to the Jamaican economy, making up over 97% of the island’s taxpaying businesses. The sector is responsible for the majority of employment in Jamaica and drives economic growth and development. As such, the Government of Jamaica (GOJ) continuously seeks to strengthen the sector through programmes that support these businesses. Furthermore, this points to the government’s strategy to intensify its efforts to strengthen the tourism industry, as a chief driver of economic growth.

(Source: JIS News)

• Fitch predicts that Aruba’s real GDP will rise by 2.0% in 2023 (down from an estimated 6.2% growth in 2022) and by 1.2% in 2024 due to strengthening private spending, investment and government consumption. The Aruban economy will grow at a weaker pace than the Caribbean average of 3.2% through 2032.
• Private consumption will grow by 4.0% in 2023, from a 0.5% expansion in 2022, investments will expand by 3.0% (2022: 5.9%), while government consumption will advance by 1.9% in 2023 (2022: 0.8%).
• Additionally, although the government has run a relatively balanced budget in recent years, projected economic growth and higher revenue generation will narrow the fiscal deficit to 0.1% of GDP in 2023, from a deficit of 1.6% of GDP in 2022, and to a surplus of 0.4% of GDP in 2024.
• Revenues are expected to increase by 10.4% in 2023, after 28.8% growth in 2022, as the government implements more prudent fiscal policy measures to cut spending and boost revenues. Meanwhile, expenditures are anticipated to rise by 3.3% in 2023, after a 3.0% decline in 2022. As a result, it is expected that total government debt to GDP will fall to 79.5% of GDP in 2023, from 81.4% of GDP in 2022.
• It is anticipated that net exports will support the Aruban economy's 1.7% average expansion in the 10 years ahead. Net exports will contribute an average of 0.7 percentage points to real GDP from 2023 to 2032. Private consumption and government consumption expansion over the same period will also support overall economic activity.

(Source: Fitch Solutions)

• The Central Bank of Costa Rica lowered its benchmark interest rate by 100 basis points (bps) to 7.5% during its policy meeting on April 20, 2023.
• This followed a 50 basis point decrease in March which was the first rate cut in four years. Between December 2021 and October 2022, the Central Bank of Costa Rica (BCCR) raised the policy rate from 0.75% to a peak of 9%.
• Headline inflation and the average of core inflation indicators have shown a sustained downward behaviour since last September, reaching in March of this year inter-annual rates of 4.4% and 4.3%, although above the upper limit of the target range (3.0% ± 1 percentage point).
• The BCCR’s rate-setting board said there was space for “a less restrictive monetary policy posture”. The BCCR also acknowledged that uncertainty prevails in the global economy and that inflation has remained above the target ranges of central banks while the Core inflation indicators have shown greater downward rigidity.
• However, the recent tensions in the financial markets linked to the failures of some US banks could negatively affect the credit conditions in advanced economies, with adverse effects on international economic activity.
• The Central Bank of Costa Rica expects the 12 and 24-month annual inflation rates to come in at 4.9% and 4%, respectively.

(Source: Central Bank of Costa Rica)