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Dom Rep Foreign Investment Will Reach 4.4 Billion Dollars This Year Published: 22 November 2023

  • President Luis Abinader presided over the inauguration of a new luxury hotel on Cayo Levantado, a development representing a €50 million investment in the Samaná province. The hotel is set to create over 500 direct job opportunities in the region.
  • During the inauguration event, President Abinader highlighted the positive trends in foreign investments in the Dominican Republic. He noted that foreign investments are anticipated to reach $4.4Bn this year, up from $4.1Bn in the previous year. This upward trajectory in foreign investments signifies economic growth and increased investor confidence in the country.
  • Abinader expressed his gratitude to investors for their commitment to promoting tourism and providing employment opportunities to Dominicans. He also mentioned that the tourism sector is expected to receive over $30Bn in investment next year.
  • David Collado, the Minister of Tourism, revealed that investments totalling 1.7Bn pesos are currently underway in Samaná, with completion expected in January and February 2024. He also predicted that 2023 would be a record-breaking year for tourism, with over 10 million tourists expected to visit the country.
  • Collado commended the government’s responsible approach to reopening the country to tourism during the pandemic, which played a pivotal role in the sector’s recovery. He highlighted the international recognition that the Dominican Republic has received for its remarkable rebound in the tourism industry.
  • The newly inaugurated Cayo Levantado Resort boasts 218 rooms and represents a significant investment of over €50Mn. This resort has also become a source of employment for the province and surrounding areas, creating approximately 500 direct jobs, with a majority being Dominican citizens, contributing to the region’s economic and social growth.

(Source: Dominican Today)

Fed Minutes Anchor Cautious Policy Approach As Risks Become More Two-Sided Published: 22 November 2023

  • Federal Reserve officials, as per the minutes of their October-November meeting, agreed on a cautious approach to raising U.S. interest rates. They emphasized that further tightening of monetary policy would only be considered if incoming information indicated insufficient progress in lowering inflation.
  • The minutes revealed that policymakers were grappling with conflicting economic signals. Despite robust U.S. economic growth, financial markets had driven interest rates higher, posing a potential threat to economic and job growth. The central theme was balancing the need to address inflation, which remained above the 2% target, with the potential negative impact of tightening credit conditions.
  • The overall tone of the Federal Open Market Committee (FOMC) minutes was cautiously hawkish, indicating a commitment to a restrictive stance for "some time." This marked a shift in the Fed's policy dialogue, with a focus on the duration of maintaining the current policy rate rather than signalling immediate further rate hikes. Fed Chair Jerome Powell emphasized the importance of a careful approach and acknowledged the uncertainty in the path forward, keeping the door open for potential adjustments based on inflation trends.

 (Source: Reuters)

Canada's Inflation Eases In October, Likely Closing The Door On More Rate Hikes Published: 22 November 2023

  • Canada's annual inflation rate decreased more than anticipated to 3.1% in October, down from 3.8% in September, with core inflation measures also dropping to their lowest levels in about two years.
  • The lower-than-expected inflation figures are likely to reduce the likelihood of further interest rate hikes by the Bank of Canada (BoC). Analysts suggest that the central bank may consider lowering its key policy rate from the current 22-year high of 5.00%, possibly in the first half of 2024.
  • However, the Canadian economy faces challenges such as a potential shallow recession, slack in the labour market, and elevated inflation. Furthermore, the government, led by Prime Minister Justin Trudeau, is under pressure to address affordability issues without exacerbating inflation, as reflected in the Finance Minister's planned fiscal update, which is expected to show widening deficits and weak economic growth.

(Source: Reuters)

Christmas Produce Uncertain Amid Losses From Recent Heavy Rains Published: 21 November 2023

  • Hundreds of farmers have suffered financial losses in the aftermath of last week's flood rains, which will further negatively affect the availability of some produce for the Christmas season. Agriculture Minister Floyd Green says farmers in St. Thomas, Portland, St. Elizabeth, St. Catherine, Clarendon and St. Andrew have been directly or indirectly affected by the severe weather.
  • Mr Green mentioned that teams from the Rural Agricultural Development Authority (RADA) have been conducting damage assessments since Saturday, with St. Thomas identified as the hardest-hit parish. "Almost all the farming communities in St. Thomas have suffered tremendous loss. We see a lot of impact across East Rural St. Andrew, largely from land slippage in those areas, and about 400 farmers impacted through land slippage in the East Rural St. Andrew area - some of our banana and plantain farmers, our vegetable farmers. We've also seen significant damage in St. Catherine, parts of Bernard Lodge, Lakes Pen, Hartlands, and damage in Clarendon and St. Elizabeth," he outlined.
  • The minister said the loss of crops is significant as many were ready for reaping. The affected crops include hot pepper, sweet pepper, onion, cassava, sorrel, pak choi and lettuce.
  • "The RADA team is still out looking to see how we can help farmers first. If there is any possibility of salvaging their crops, that's our first priority and then trying to put dollar values to the impact. So we do expect that before the end of this week, we will have a dollar amount, but I've already said to the team to start intervention as quickly as possible to see how we can get our farmers back planted again,” he said.
  • The Agriculture Minister noted that chicken farmers were also affected by the heavy rains and that the report from RADA will determine whether the government will turn to imports to boost the availability of certain produce.

(Source: RJR News)

JMMB Expands Operations To Barbados Published: 21 November 2023

  • The JMMB Group, through its wholly-owned subsidiary, JMMB International Limited (JMMB International), officially began operations in the Caribbean island nation of Barbados. This entry to Barbados marks the fourth Caribbean nation in which the Group has a physical presence, the others being Trinidad and Tobago, Jamaica and the Dominican Republic.
  • This announcement of JMMB Group’s expansion to Barbados was made during the company’s quarterly investor briefing. The JMMB Group had already been serving Barbadian business clients remotely, primarily via its representatives based in Jamaica and Trinidad and Tobago. Now, the launch of JMMB International marks its entry at a direct operational level.
  • The JMMB International team of financial advisors is being led by its Trinidad & Tobago-based CEO, Tricia Kissoon; who is supported by the Barbados-based head of business development and executive director, Michael Jordan.
  • In speaking to the strategic role that this entry to Barbados will play in the further growth and expansion of the JMMB Group across the Caribbean region, JMMB Group CEO, Keith Duncan, first praised the team for their hard work and commitment to achieving the goal of opening JMMB’s first office in Barbados.
  • “We saw this as another opportunity to further build on our goal of providing integrated financial solutions across the region, while seeking to uniquely address client needs, especially as they try to attain their financial objectives, all while navigating challenging national, regional and global economies. I am confident that our team will work to partner with our clients in a way that provides win-win outcomes for all” he added.

(Sources: RJR News & JMMB)

Remittances To Latin America And The Caribbean Set A New Record   Published: 21 November 2023

  • Remittances received by Latin American and Caribbean countries are projected to reach a record $155Bn in 2023 if the trends observed to date continue, according to a new report by the Inter-American Development Bank.
  • This is an increase of 9.5% compared to the $142Bn received in 2022, completing fifteen consecutive years of growth.
  • The sustained growth of remittances reflects new intraregional migratory flows and the contribution that migrants make to their countries of origin.
  • Despite a moderate increase between 2017 and 2019 and the extraordinary growth in 2021 (26.7%), during the COVID-19 pandemic, remittances to Latin American and Caribbean countries have shown sustained growth of around 10% annually for the past 10 years.
  • This increase in 2023 is mainly explained by the growth in remittances received by Central American countries (13.2%), the growth in remittances received by Mexico (9.8%), and the growth in remittances that South America received (7.9%). In the case of the Caribbean countries, growth in 2023 is more moderate (2.6%).
  • This new report by the Inter-American Development Bank also offers a detailed analysis of the origins and destination of remittances to the countries of the region based on data published by the Central Banks.

 (Source: IADB)

Venezuela Close To Approving Offshore Gas License   Published: 21 November 2023

  • Venezuela is close to approving a license for Shell and the National Gas Company of Trinidad and Tobago to develop a promising offshore natural gas field and export its production to the Twin Island Republic.
  • According to Reuters, the license could set in motion a long-running effort by Trinidad to boost its gas processing and petrochemical exports while providing Venezuela with a much-needed extra source of cash.
  • Under the proposed terms, Shell would operate the project with a 70% stake, and Trinidad's NGC would hold the remaining 30%.
  • Trinidad and Tobago's Prime Minister Keith Rowley on Monday confirmed that the parties were negotiating the license and added that Energy Minister Stuart Young was expected to visit Caracas this week.

(Source: Reuters)

US Dollar At Lowest Since September, Global Stocks Gain   Published: 21 November 2023

  • The U.S. dollar dropped to its lowest in more than two months on Monday on expectations that U.S. interest rates have peaked, as global equities rose. Closely watched U.S. treasury yields slipped after the auction, while global oil futures gained $2 on the prospect of supply cuts.
  • The MSCI World Equity Index gained 0.72%. Europe's benchmark STOXX index inched up 0.1%, with energy stocks leading gains. On Wall Street, the Nasdaq led gains as shares of Microsoft hit record highs. The dollar index fell to 103.26, its weakest since the start of September, as investors appeared to solidify bets that the Fed could start cutting interest rates next year.
  • Trading was expected to be muted for much of the week ahead of Thursday's U.S. Thanksgiving holiday. Black Friday sales will test the pulse of the consumer-driven U.S. economy this week. Minutes of the Fed's last meeting will offer some colour on policymakers' thinking as they held rates steady for a second time.
  • Signs of progress in the battle against inflation in the United States have driven a recovery in stocks this year as investors hope for an end to the cycle of rate hikes that have been policymakers' main tool for fighting price increases on goods.

(Source: Reuters)

 

US Coast Guard Seeks Source Of Some 1.1 Million Gallons Of Crude Oil In Gulf Of Mexico   Published: 21 November 2023

  • The U.S. Coast Guard is actively searching for the source of an underwater pipeline leak off the Louisiana coast in the Gulf of Mexico. The leak, estimated to have released over a million gallons of crude oil, prompted the closure of the 67-mile-long pipeline by Main Pass Oil Gathering Co. on Thursday.
  • Oil recovery efforts are underway, with overflight teams observing visible oil moving southwest away from the Louisiana shore. While the exact volume of discharged oil is not confirmed, initial estimates by the Coast Guard suggest 1.1 million gallons (26,190 barrels). So far, there have been no reported injuries or shoreline impacts. The cause of the leak is under investigation.
  • The U.S. Environmental Protection Agency has reported the activation of the National Response Team, consisting of 15 federal entities, to coordinate the response to this oil pollution incident. The company owning the pipeline, Third Coast Infrastructure, has not provided comments, deferring inquiries to the Coast Guard.

(Source: Reuters)

Gov’t Commits to Identifying New Markets for Mining Exports Published: 03 November 2023

  • Minister of Agriculture, Fisheries and Mining, Hon. Floyd Green, says the Ministry will continue to place “tremendous emphasis” on the mining sector to facilitate growth and to identify new markets for export.
  • The commitment was given as the country saw a 164.2 per cent expansion in the mining and quarrying sector for the April to June quarter compared to the same period last year.
  • Minister Green said the growth was largely due to a higher output of aluminium linked to increased production at the Jamalco alumina refinery in Clarendon. Notably, there was an over 100 per cent increase in limestone exports.
  • Turning to other developments in the sector, the Minister said that a ‘Mining Matters’ mobile app, which will allow Jamaicans to report grievances caused by the adverse effects of mining and quarrying activities, will be launched this month. The app is being developed in partnership with the European Union (EU).
  • The app will help to frame problems reported in a structured and systematic framework, clearly enhancing visibility and facilitating a comprehensive response. The application will also allow residents to do real-time reporting and allow agencies to respond in real time.
  • The Minister first spoke to JIS News about the software last month, along with a cost of production (COP) app aimed at assisting stakeholders in the sector to improve their business operations. The COP app will better assist operators in calculating costs, pricing their products, and determining profit margins.

(Source: JIS News)