Economy Grew by 1.4% in April–June Quarter
- The Planning Institute of Jamaica (PIOJ) is reporting that the economy grew by an estimated 1.4% year on year during the April to June 2025 quarter. Speaking at PIOJ’s hybrid quarterly press briefing on Tuesday (August 19), Director General, Dr. Wayne Henry, said the outturn for the review quarter largely reflected continued growth in most industries.
- The Goods Producing Industry grew by 3.8%, driven by growth in three of four industries, while the Services Industry increased at a much slower - 0.5%.
- The Agriculture, Forestry and Fishing industry grew by 9.8%, reflecting the impact of more favourable weather conditions, which contributed to an increase in output per hectare and an 11.0% expansion in domestic crops reaped.
- “Agriculture, Forestry and Fishing and the Accommodation and Food Service industries – two industries that were hardest hit by the weather-related disruptions of 2024 – were key drivers of this positive performance. Both industries have entered a new growth phase with current output levels surpassing their pre-hurricane Beryl output levels,” Dr. Henry said.
- Henry also noted that growth in the economies of Jamaica’s major trading partners, which supported external demand, was also among the factors that influenced performance during the review quarter. An increase in the labour force of 24,200 people and higher levels of consumer and business confidence, which drove domestic demand, also contributed to the expansion in economic activity.
- The performance of the agricultural industry stemmed from a 14.1% growth in the output of other agricultural crops, with increased production being recorded in all nine crop groups. Based on current output levels, the agricultural industry has fully recovered from the shock of Hurricane Beryl and is now in a new growth phase, according to the PIOJ.
- However, real Value Added for the Mining & Quarrying industry decreased by 3.5%, reflecting declines in both alumina (5.5%) and crude bauxite production (1.5%). The decline in output from the sector reflects reduced demand from a major overseas purchaser. Meanwhile, output of the Manufacturing industry was estimated to have grown by 1.4%.
- Though the performance of the services sector was more subdued, growth of 1.6% was recorded for the Construction industry, reflecting expansion in both the Building Construction and Other Construction components. The sector benefited from a 745.9% increase in housing starts by the National Housing Trust, driven by 2,077 new starts at the Longville Park housing scheme and a higher work-in-progress supported by the strong increase in housing starts reported in the previous quarter.
(Source: JIS)