Jamaican Economy Expands by 1.5% in Q3

According to the Planning Institute of Jamaica (PIOJ) the Jamaican economy expanded by 1.5% in the July to September quarter relative to the corresponding period of 2014. The Goods Producing Industry and Services Industry recorded growth of 4.4% and 0.6%, respectively. Within the Goods Producing Industry, increases in real value added for Agriculture, Forestry & Fishing (3.3%), Manufacture (9.7%) and Construction (0.8%) outweighed a decline of 1.0% recorded by the Mining & Quarrying industry. The strong performance from the Manufacturing sector was influenced by higher output from both the Food, Beverages & Tobacco and Other Manufacturing categories as well as higher production of petroleum and cement products.

All subcategories of the Services Industry recorded growth except for Producers of Government Services (down 0.2%). The industries registering the largest growth rates were Electricity & Water Supply (3.5%); Transport, Storage & Communication (1.5%); and Hotels & Restaurants (1.2%).

For January to September 2015, real GDP was estimated to have increased by 0.8%. The Goods Producing and Services Industries grew by 1.5% and 0.6%, respectively. The industries recording the largest increases in real value added during the first nine months of 2015 were Manufacture, Hotels & Restaurants, Mining & Quarrying, and Transport, Storage & Communication.

The positive economic performance, albeit weak, along with more favourable variables such as lower interest rates and a narrowing fiscal deficit are all conditions that affirm investors’ positive sentiments to the sovereign and could set the country on a path for an improvement in credit ratings overtime.