Jamaican Economy To Contract Amid Global Covid-19 Disruptions

• Jamaica will experience a recession in 2020 as its economy faces a combination of public health measures aimed at slowing the spread of Covid-19 that significantly disrupt day-to-day commerce, a collapse of tourism and reduced goods export demand.
• As a result, Fitch has revised down its 2020 real GDP growth forecast, for the Jamaican economy, from 0.1% y-o-y previously to -2.6%. Growth is expected to recover slowly in H220, before reaching 1.1% in 2021.
• A more pronounced slowdown in global economic activity and an extended coronavirus outbreak pose downside risks to Jamaican economic activity. In other words, a slower-than-expected rebound in global economic growth or extended travel restrictions would lead to a deeper contraction in Jamaican economic activity.

(Source: Fitch)