• The Ministry of Finance reported a $29.4Mn surplus for May 2025, marking a $10.7Mn year-over-year improvement, as reduced government spending more than offset softer revenue collections.
• Preliminary data showed overall revenue slipped 4.3% ($12.2Mn) to $268.2Mn during the month. However, an 8.7% ($22.9Mn) contraction in expenditure to $238.8Mn underpinned the stronger fiscal position.
• Tax receipts grew modestly, up 1.5% ($3.4Mn) to $237.9Mn, led by higher Value-Added Tax (VAT) inflows, which rose $18.7Mn to $119.2Mn. Gains were also recorded in taxes on financial and capital transactions (up $4.4Mn to $11.5Mn) and taxes on use and permission to use goods (up $2.6Mn to $24.0Mn). By contrast, property tax collections fell $11.4Mn to $10.5Mn, as last year’s numbers had been boosted by arrears payments.
• Non-tax revenue saw a steep 34% ($15.6Mn) decline to $30.3Mn, reflecting lower interest and dividend receipts.
• On the expenditure side, recurrent outlays totalled $225.7Mn, down 7.1% ($17.2Mn) from the prior year. Subsidies fell by $8.7Mn to $11.2Mn, while other payments dropped by $9.0Mn to $16.3Mn, largely due to timing differences on insurance premium payments. Capital expenditure decreased by $5.6Mn to $13.1Mn.
• Meanwhile, the government’s debt stock grew by $72.3Mn in May. Borrowings of $224.4Mn were sourced entirely from the domestic market, with repayments of $152.1Mn directed almost exclusively to domestic creditors (99.5%), and the remainder (0.5%) to foreign obligations.

(Source: CariCRIS)

• A downturn in British retail sales entered its 11th consecutive month in August, and shops raised their prices by the most since late 2023, a Confederation of British Industry survey showed on Wednesday.
• The CBI's monthly gauge of how retail sales compared with a year earlier was little changed at -32 from July's -34 but better than a dip to -46 in June. The outlook for September improved to -161.
• "Weak demand and higher labour costs continue to put pressure on margins, dampening sentiment across the retail and wider distribution sector," Martin Sartorius, principal economist at the CBI said.
• Many employers have said they are feeling the strain from a decision by finance minister Rachel Reeves to make them pay higher employment taxes from April at the same time as a sharp increase in Britain's minimum wage.
• The CBI's measure of average selling prices in the 12 months to August rose to +65, the fastest rate since November 2023, from -35 in May, but the expected increase for September was a slower +43.

__________________________
¹The CBI’s monthly retail gauge shows the net balance of retailers reporting higher versus lower sales compared with a year earlier. A negative number means more retailers saw sales fall than rise, with September’s –16 indicating sales remain weak but the decline has eased from June’s sharper –46 and August’s -32.

(Sources: Reuters)

• European banks have seen widespread unauthorised direct debits from PayPal accounts, the German Savings Banks Association (DSGV) says.
• The German newspaper Sueddeutsche Zeitung (SZ) says payments worth in the region of 10 billion euros (£8.6bn)have had to be blocked, after PayPal's fraud-checking system failed.
• It said payments were paused on Monday when lenders reported millions of suspicious direct debits from the payment firm. The DSGV confirmed to the BBC there had been "incidents involving unauthorised direct debits initiated by PayPal against various credit institutions".
• The BBC has approached PayPal for comment. It told Reuters "certain transactions from our banking partners and potentially their customers" had been affected by a temporary service interruption.
• The DSGV said PayPal had "acknowledged the disruptions" and "assured" it had resolved the problem. PayPal aims to filter out scams before they can get to banks through a security system. In particular, it aims to deal with fake direct debits which have been set up by criminals.
• There are many ways they are set up, but one typical method is tricking a person into handing over their details by pretending to be a bank or financial institution by phone. According to SZ, PayPal's filter system did not work properly on Monday, resulting in unchecked direct debits being sent to banks alongside legitimate ones.

(Source: BBC)

• Wisynco Group Limited (Wisynco) has announced two major investments as part of its growth strategy.
• The group acquired a 30% equity stake in Ringtail Holdings Limited (RHL), the parent of Select Brands Limited (SBL), and purchased the business and production assets of Ringtail Bottlers Limited. These acquisitions secure exclusive co-packing rights for Stone’s Ginger Wine and other brands within Select Brands’ portfolio.
• While Select Brands will continue to operate independently, Wisynco will have board presence at both Ringtail Holdings Limited and Select Brands Limited. Moreover, the alliance will explore various strategic and commercial synergies moving forward in the areas of distribution, product innovation, manufacturing, marketing and promotion.
• The acquisition is a notable step in Wisynco’s push to expand its beverage and spirits portfolio and could contribute to its long-term growth and market diversification.
• Group CEO Andrew Mafood noted that “…. We are proud to take on its production and ensure it continues to thrive both here and abroad.” Likewise, David McConnell, co-managing director of Select Brands, noted that leveraging Wisynco’s production and distribution strengths alongside Select Brands’ expertise in premium brand-building can “…optimise the performance of our global alcohol beverage portfolios while continuing to serve Jamaican consumers…”.
• Mahfood added, “Now was the right time for this partnership. It complements Wisynco’s broader growth strategy while aligning us with the preeminent leader in wines, spirits and the premium on-premise trade.”
• At market close on August 26^th, Wisynco’s stock traded at $21.46, which is marginally higher than the $21.44 at the start of the year. Likewise, it traded at a P/E ratio of 17.17x, which is marginally higher than the Main Market Manufacturing and Distribution average of 17.06x.

(Source: JSE, NCBCM Research )

• The Bank of Jamaica (BOJ) is projecting that gross domestic product (GDP) growth in Jamaica will recover in the range of 1.0% to 3.0% for the financial year 2025-26, largely due to the performance in the agriculture, mining, and tourism sectors.
• Governor Richard Byles shared this projection during a recent press conference at the Bank’s headquarters in downtown Kingston. However, he noted that expectations were for growth to cool thereafter. “Subsequently, growth is forecast to normalise in the range of 1.0% to 2.0%. Employment levels remain high, even as anecdotal data suggest that wage pressures are moderate,” he said.
• Meanwhile, he noted that the BOJ estimates that the domestic economy grew in the range of 1.0% to 2.0% for the June 2025 quarter, resulting from expansion in most industries.
• Notwithstanding the positive economic outlook, Governor Byles pointed to uncertainties related to the policies of the United States (US), as that country continues to reset relationships with its trading partners and tighten its immigration policies.
• “These developments may slow the pace of economic activity and could cause inflationary pressures in the US, which could adversely affect the Jamaican economy,” he said.

(Source: JIS)

• A recent agreement signed by the Dominican Republic and Argentina aims to bolster bilateral tourism, recognising the sector as a key instrument for regional integration and economic development. The joint declaration was signed by the Dominican Minister of Tourism, David Collado, and the Argentine Secretary of Tourism, Environment, and Sports, Daniel Scioli.
• The agreement seeks to implement tourism facilitation measures and to coordinate joint promotional programs that will help increase visitor flow between the two nations. It also establishes an exchange of experiences and best practices for attracting tourism investments.
• Minister Collado highlighted the importance of strengthening ties with Argentina, which has become the Dominican Republic’s third-largest source of tourists. Minister Scioli emphasised the impact of tourism on both economies and cultural diversity.
• During the meeting, President Luis Abinader expressed his hope that the agreement would encourage more Argentinians and Dominicans to visit both countries.

(Source: Dominican Today)

• Panama's economy is expected to grow this year as the impact from the closure of First Quantum Minerals' Cobre Panama copper mine fades, and non-mining sectors continue to grow, the International Monetary Fund's executive board said on Monday, August 25, 2025.
• Panama's economy is recovering after the Cobre Panama mine, one of the world's largest open-pit copper deposits, was closed in 2023 following protests from residents over tax contributions and its environmental impact.
• The IMF expects Panama's economy to grow 4.5% in 2025 and to keep growing 4% yearly through 2030. As a comparison, the Central American country's economy grew 2.9% in 2024. The IMF also noted that the country's economy is expected to continue its recovery; however, the outlook is subject to significant downside risks and a high degree of uncertainty. Additionally, a spending reduction plan approved by the cabinet, if fully implemented, could bring the government’s 2025 fiscal target within reach.
• Panama, one of the world's fastest-growing economies in the last decade, recorded a significant slowdown in gross domestic product growth in 2024 from the previous year's 7.4% expansion, as the copper mine closed and air transport declined.

(Source: Reuters)

• Wall Street banks have hired dozens of senior executives in recent months, as improved economic sentiment has spurred mergers and IPOs after a lull earlier in the year due to concerns over the effect of U.S. tariffs.
• The surge in job-hopping, which typically occurs in the spring, illustrates how rising confidence has prompted banks to staff up to handle a wave of dealmaking.
• On Friday, JPMorgan named industry veteran Jerry Lee as global chair of investment banking, who will be joining from his rival Goldman Sachs. The bank has recently added several senior bankers in technology, energy and activism defence and hired more than 300 bankers between January and April across its global banking unit.
• Wall Street executives usually receive and consider job offers between January and April, weeks after receiving their yearly bonuses. But the 2025 hiring season was interrupted by the announcement of U.S. tariffs that President Donald Trump called "Liberation Day."
• Talks for M&A and capital markets transactions froze. "The tariffs put a hard stop on hiring and banks started to downsize," said Alan Johnson, founder of compensation consultancy Johnson Associates. In June, as investment banking activity resumed, job openings that were on hold materialised, according to bankers and recruiters.
• Although recruitment improved after tariff-fueled freezing, it is still below more active years in the last decade, said Alan Johnson, founder of compensation consultancy Johnson Associates.
• While hiring for senior managing director positions has been steady, banks started hiring more junior staff in August, according to Tom Ragland, founder and CEO of financial services search firm the Harrison-Rush Group.

(Sources: Reuters)

• Friday’s booming rally turned into Monday’s reality check as investors weighed just how aggressive the Federal Reserve will be on lowering interest rates and how the moves might impact the broader business and economic climate.
• Chair Jerome Powell, in his annual address at the Jackson Hole, Wyoming, symposium, gave Wall Street hope of easier days ahead when he said conditions “may warrant adjusting our policy stance,” which is generally seen as “Fedspeak” for cutting rates.
• Stocks soared while Treasury yields plummeted on the news as the knee-jerk reaction took hold for a rate reduction when the Federal Open Market Committee issues its next decision on Sept. 17.
• However, cheer turned to caution Monday as market experts weighed what happens next, even if a move next month is baked in. Stocks were mostly lower, and shorter-maturing Treasury yields, which are more sensitive to Fed action, moved higher.
• Traders on Monday were pricing in a near-certainty of a September quarter percentage point reduction from the Fed’s current target rate, currently around 4.3%. The implied probability of 82% was only slightly higher than a week ago but well above the 62% odds of a month ago, according to the CME Group’s FedWatch measure of futures prices. However, there is less certainty from there.
• The implied probability for another cut in October was just 42%. That second cut is about fully priced in for December, but there’s just a 33% expectation for three total moves this year.

(Source: CNBC)

• Jamaica is set to strengthen its position as one of the world’s most accessible island destinations over the next six months with expanded air service and seat capacity.
• From September 2025 through February 2026, seat capacity across the island’s three major airports is projected to grow by 4.4% compared to the same period last year. This includes Montego Bay’s Sangster International Airport (MBJ), Kingston’s Norman Manley International Airport (KIN), and Ocho Rios’ Ian Fleming International Airport (IFIA).
• For the September–February period, MBJ will see a 5.6% increase in scheduled seat capacity and an 8.5% rise in departures year over year. KIN is expected to record a 1.3% increase in capacity and a 3.1% rise in departures, while IFIA is projected to see a 37% increase in overall capacity.
• “This expanded airlift reflects Jamaica’s continued growth as a leading global tourism destination,” said Jamaica’s Minister of Tourism, Hon Edmund Bartlett. “Our airline partners across North America, Europe and the Caribbean recognise the demand for our island’s world-class offerings and have responded with more seats, more gateways and more convenience for travellers. This puts us firmly on track to meet our 5x5x5 growth targets.”
• In North America, service from key U.S. gateways will be complemented by new Canadian connections, giving travellers more ways to reach Jamaica’s shores. MBJ will welcome additional U.S. flights, including from Baltimore/Washington International Airport and Fort Lauderdale-Hollywood International Airport, along with new WestJet service from Edmonton, Alberta.
• In Europe, Jamaica gained its first direct Lisbon–Montego Bay flights on World2Fly Portugal, building on existing European service. Regional connectivity has improved with LIAT operating approximately three weekly flights between Kingston and Montego Bay.
• The growth in airlift comes on the heels of a successful 2024, which saw 4.3 million visitors and $4.3Bn in earnings. The U.S. remains Jamaica’s top source market, accounting for approximately 75% of stopover arrivals, while Canadian and European arrivals continue to post strong year-over-year gains.

 (Source: Jamaica Tourist Board)