Economy Grows, But Drought Weighs on Domestic Output  

• The Jamaican economy grew by 2.3% during the second quarter of 2023 when compared to the second quarter of 2022. This resulted from growth in the Services and Goods Producing Industries of 2.2% and 2.6%, respectively. This performance reflected the continued recovery of the economy from the COVID-19 pandemic.
• All industries within the Services Industries grew, except for Wholesale & Retail Trade; Repairs; Installation of Machinery & Equipment and Producers of Government Services which both declined by 0.1%. Higher levels of activity were recorded for Transport, Storage and communication (5.6%), Hotels and restaurants (7.8%), Electricity and Water Supply (6.2%), Other Services (2.2%), Finance & Insurance Services (2.1%) and Real Estate, Renting & Business Activities (1.8%).
• The increase in the Goods Producing Industries was due to growth in Mining and quarrying (164.2%) and Manufacturing (3.1%). However, value added for the Agriculture, Forestry & Fishing and Construction industries declined by 8.1% and 0.7% respectively. Agriculture was impacted by continued drought conditions that significantly reduced yields and delayed the land preparation and planting of domestic crops while lower expenditure on the South Coast Highway Improvement Project impacted construction activity.
• The growth in the Mining and quarrying industry was largely due to higher output of alumina due to increased production at the JAMALCO plant which was closed in the similar period of 2022. The Manufacturing industry grew by 3.1% as a result of increased production in the Food, Beverages & Tobacco and Other Manufacturing sub-industries of 4.6% and 0.7%, respectively.

(Sources: STATIN & NCBCM Research)