JMEA President Says Country on Right Track  

  • Jamaica Manufacturers and Exporters Association (JMEA) President, John Mahfood, says the country is on the “right track” towards achieving higher levels of sustainable economic growth and development.
  • Mr Mahfood highlighted that the Government’s record trillion-dollar fiscal year 2023/24 budget represents the culmination of significant economic reforms undertaken over the past eight years. He also noted that the reforms have resulted in a gradual reduction in the country’s debt and balance of payments and a corresponding increase in economic growth.
  • Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, indicated in his 2023/24 Budget Debate presentation on March 7 that the economy is estimated to have expanded by 3.4% in the fourth quarter of 2022, continuing positive growth witnessed in previous quarters and “signalling the country’s recovery from the COVID-19 pandemic”.
  • The JMEA president highlighted several programmed provisions outlined in the Budget, which he describes as key standouts. These include investments earmarked to further build out road and water infrastructure, which he expects will make Jamaica more competitive over the ensuing years. Infrastructure spending is anticipated to not only make Jamaica competitive but will also serve as an avenue to boost economic growth and development for years to come.
  • Other standouts include: the announced waiving of HEART/NSTA Trust fees for programmes up to Level IV (Associate Degree), as well as the 44% minimum wage increase. The waiver will allow persons to access vocational training regardless of economic status and is in keeping with the Government’s mandate to increase the provision of trained labour for the economy. Further, with the cost of living rising rapidly and purchasing power falling due to high inflation, the increase in the minimum wage is welcomed by low-income households. However, the risks of the higher minimum wage could be higher inflation and increased unemployment as employers cut staff to keep up with wage costs. As a result, the next few months will be critical in uncovering the effects of this move.

(Source: JIS News and NCBCM Research)