Jamaica Records 6% Growth in Q4 2021

• Jamaica’s economy grew by an estimated 6% year over year for the October to December 2021 quarter on the back of a 7.8% and 0.4% increase in the Services and Goods Producing Industries, respectively, the Planning Institute of Jamaica (PIOJ) reported. 
• The outturn also represents the third consecutive quarter of growth recorded, indicating that Jamaica’s recovery from the economic fallout from the COVID-19 pandemic, is well under way. 
• The growth largely reflected the continued relaxation of COVID-19 containment measures globally and locally, which facilitated increased domestic and external demand, resulting in a general uptick in economic activities. 
• All five services industry subsectors recorded growth, led by the Hotels and Restaurants sector, with an estimated 76.2% increase. The sector’s performance was largely spurred by a 186.3% increase in stopover visitor arrivals and 32,719 cruise passengers relative to none in the corresponding period of 2020.
• Real GDP is projected to grow within the range of 5.0% to 7.0% during January– March 2022 supported by continued positive effects of the easing of previously implemented COVID-19 containment measures in the domestic economy. Demand for tourism services is also expected to improve as citizens in key source markets expend pent-up demand as the effects of the omicron variant dissipates, thereby supporting growth. Additionally, higher employment levels should result in increased domestic demand auguring well for economic activity. 
• The main downside risks to this outlook includes: plant down-time due to relatively aged plant equipment in major industries; adverse weather conditions; slower than anticipated growth in the global economy due in part to the impact of the Coronavirus on trade; and rising geopolitical tensions between Russia and the Ukraine.

(Source: PIOJ)