Bank Of Jamaica Projects Higher Growth Outturn For 2021/22 Fiscal Year

• Bank of Jamaica (BOJ) Governor, Richard Byles, says the country’s growth outturn for the fiscal year 2021/22 is likely to be higher than previously anticipated. The BOJ is currently projecting that real GDP growth for this fiscal year will be in the range of 7.0%-10.0%, up from the 5.0%-8.0% it indicated in May 2021.
• Pointing to this rebound are leading indicators, such as GCT flows and electricity consumption. The Governor also added that key drivers of this rebound are the tourism and related sectors due to the stronger than expected improvements in the economies of Jamaica’s main trading partners from the fallout sparked by the COVID-19 pandemic, largely driven by successful vaccination programmes.
• The BOJ anticipates continued strong growth in the construction sector while noting that risks to the growth forecast were balanced. A faster pace of growth is possible if tourist arrivals and related activities rebound faster, due to the pent-up demand that exists.
• The main downside risks relate to the domestic spread of the COVID-19 virus, the emergence of new variants, and the accompanying measures to control it. The BOJ Governor noted that if Jamaica’s stringency measures are tightened and protracted, it could influence a slowdown in travel and disruptions in the production and distribution of goods. He maintained, however, that the macroeconomic outlook pointed to “even stronger improvement” in real economic activity.

Source: (JIS News)