• Minister of Tourism, Hon. Edmund Bartlett, says Jamaica stands ready to take on the role of a key supply logistics hub for the Caribbean cruise industry, creating a huge and transformative opportunity for local producers.

• Mr. Bartlett added that several major cruise lines, including the world’s two biggest cruise companies, Carnival and Royal Caribbean, have expressed an eagerness to source more of their onboard product needs from the island, marking a significant development for Jamaica’s economy. “

• Minister Bartlett, whose team recently held talks with a distinguished delegation from Carnival Cruise Lines, including senior executive and Jamaica-born Marie McKenzie, in Kingston, highlighted that the interest from these leading cruise lines is a testament to the growing recognition of Jamaica’s ability to deliver top-tier goods and services.

• However, he pointed out that meeting the rigorous standards set by international cruise operators will require substantial improvements in product sophistication, quality control, and supply chain efficiency. He emphasized that it is precisely for this reason that the Tourism Linkages Network and Jamaica Vacations (JAMVAC) have been working tirelessly to equip local businesses to meet this rising demand.

• He also pointed to the potential of integrating local artisans into the cruise supply chain, which would not only promote Jamaican culture but also enhance the tourism experience. Craft products, art, and traditional goods could gain exposure on cruise ships, allowing artisans to showcase their talents internationally.

• Ultimately, enhancing local supply chains is crucial for making Jamaica’s tourism sector more resilient and self-sufficient, as it will help to drive long-term economic recovery and growth through partnerships with global cruise lines.

(Source: JIS)

• Growth in gross domestic product (GDP) for Mexico was revised slightly higher for  its September quarter (Q3 2024), largely owing to stronger services activity, statistic agency INEGI  said on Friday.

• The economy grew at an annualized 1.6% rate in Q3, up from 1.5% growth in the first estimate reported 30 October. Still, growth in Q3 marked an easing from 2.2% annual growth recorded in Q2 2024.

• Comprising 60% of the economy, services sector growth was revised to an annualized 2.1% in the final estimate, from 1.9% in the preliminary estimate. The rebound in services in Q3, up from 1.5% in the June quarter, might be due to the delayed effects of increased public spending from the Mexican electoral process and completed works from the previous administration, Citibanamex said.

• While the industrial component, comprising 32% of GDP, experienced annualized growth of 0.4%, that was revised down from the previously estimated 0.5% growth. Nevertheless, the revised growth rate is slightly higher than the 0.3% growth observed in the second quarter.

• Additionally, Mexico's central bank, known as Banxico, lowered its key rate by 25 basis points to 10.25% last week in a unanimous decision, underscoring progress on bringing down core inflation, and signaled future rate cuts were possible.

(Source: Argus Media & Reuters)

• The Bahamas has unlocked more than US$120Mn to fund the conservation and management of its oceans and mangroves through a debt swap financed by Standard Chartered and backed by the private sector.

• Debt-for-nature swaps are emerging as crucial tools to help countries achieve conservation and climate goals, addressing the US$942Bn global nature finance gap estimated by BloombergNEF.

• By spending US$215.7Mn to buy back Eurobonds and repurchasing an US$81Mn commercial bank loan using a 4.7% US$300Mn 15- year loan from Standard Chartered, the Bahamas can redeploy interest and principal payment savings into extensive ocean conservation projects.

• The swap comes after nations at a UN biodiversity summit in Colombia in October failed to devise a plan for how countries would reach the ambitious global goals for mobilizing billions of dollars for nature conservation. 

• Funding from the Bahamas swap will go towards restoring mangroves damaged by the hurricane, managing the archipelago's 6.8Mn hectares of marine protected areas and supporting the build out of a new project to protect the entire Bahamian ocean area.

• The Bahamas’ debt swap sets a precedent for leveraging private sector involvement in conservation financing, addressing significant environmental challenges, while promoting sustainable economic development.

(Sources: Reuters & ESG News)

• OPEC+ nations are discussing a further delay to a planned oil output hike that was due to start in January, two sources from the producer group said, ahead of Sunday's meeting to decide policy for the early months of 2025.

• The two OPEC+ sources were speaking after OPEC+ members Iraq, Saudi Arabia and Russia held talks in Baghdad, Iraq, on Tuesday, November 26, 2024. OPEC+ comprises the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia.

• OPEC+, which pumps about half the world's oil, had planned to gradually roll back oil production cuts with small increases over many months in 2024 and 2025. However, a slowdown in Chinese and global demand, and rising output outside the group, have put a dampener on that plan.

• Notably, at its most recent meeting on November 3, 2024, OPEC+ agreed to delay a planned December output increase by a month until the end of December. The hike is due to be 180,000 barrels per day (bpd), a small part of the total 5.86 million bpd of output OPEC+ is holding back, equal to about 5.7% of global demand. OPEC+ agreed to those cuts in separate steps in 2022 to support the market.

• However, last week, OPEC+ sources said the output hike could be delayed until the first quarter. Analysts at Commerzbank expect it could be postponed until at least the end of the first quarter.

• Despite OPEC+'s cuts and delays to output hikes, oil prices have mostly stayed in a $70-$80 per barrel range this year and on Tuesday (November 26, 2024) were trading below $74 a barrel, not far above a 2024 low reached in September.

(Source: Reuters) 

• Federal Reserve officials expressed confidence that inflation is easing and the labour market is strong, allowing for further interest rate cuts albeit at a gradual pace, according to minutes from the November meeting released on November 26, 2024.

• The meeting summary contained multiple statements indicating that officials are comfortable with the pace of inflation, even though by most measures it remains above the Fed’s 2% goal.

• With that in mind, and with conviction that the jobs picture is still fairly solid, Federal Open Market Committee members indicated that further rate cuts likely will happen, though they did not specify when and to what degree.

• “In discussing the outlook for monetary policy, participants anticipated that if the data came in about as expected, with inflation continuing to move down sustainably to 2 per cent and the economy remaining near maximum employment, it would likely be appropriate to move gradually toward a more neutral stance of policy over time,” the minutes said.

• The FOMC voted unanimously at the meeting to take down its benchmark borrowing rate by a quarter percentage point to a target range of 4.5%-4.75%. Markets expect the Fed could cut again in December, though conviction has waned among concerns that President-elect Donald Trump’s plans for tariffs could stoke inflation higher.

• That said, there was no mention of the election in the minutes, save for a staff notation that stock market volatility rose before the November 5th election results and fell after. There also was no discussion of the implications of fiscal policy, despite anticipation that Trump’s plans, which also include lower taxes and aggressive deregulation, could have substantial economic impacts.

(Source: CNBC) 

• Wigton Energy has announced its success in the Generation Procurement Entity's (GPE) 100MW renewable energy tender. Following a rigorous selection process, Wigton Energy emerged as one of two entities awarded in the tender process.
• Wigton Energy will be installing a 49.83MW solar energy facility in Clarendon. Once completed, it will become the largest solar installation in Jamaica. With this award, Wigton reinforces its leadership in diversifying Jamaica's energy mix and expanding beyond its established portfolio in wind energy.
• CEO of Wigton Energy, Gary Barrow stated: "This project is a testament to the impact of the strategic shift Wigton Energy has undertaken to diversify into multiple forms of renewable energy and not just wind."
• As Jamaica seeks to increase its reliance on renewable energy, Wigton Energy is at the forefront of this critical shift. The new solar facility in Clarendon will supply clean, sustainable power and play a pivotal role in enhancing the country’s energy independence while advancing its environmental goals.
• In recent months, the company made significant structural changes to align with its new strategic direction. Coming out of these structural changes, Wigton Energy will focus on five key strategic pillars to drive sustained and profitable growth, which includes; being brilliant at the basics, growth through diversification, agile work culture, brand repositioning, and strategic partnerships, with an emphasis on diversification.
• As Wigton Energy actively expands into other renewable energy solutions, it is simultaneously working on enhancing operational efficiency and exploring both independent and partnership investment opportunities. This strategic shift is essential for sustaining shareholder value and ensuring long-term growth by branching into new sectors and expanding its capabilities to boost earnings.

(Sources: JSE & NCBCM Research)

• The Government of Jamaica (GOJ) has designed an economic diversification plan to harness Jamaica’s unique comparative advantages and position the nation for sustainable growth in the global economy.
• Prime Minister, Dr. the Most Hon. Andrew Holness, outlined the comprehensive strategy, which aims to diversify Jamaica’s economic base and foster the development of new industries, during the launch of ASPIRE Jamaica, at the Office of the Prime Minister on November 19.
• ASPIRE Jamaica, the GOJ’s new policy framework for inclusive growth, outlines six critical pillars for transforming Jamaica into a modern, peaceful, productive and prosperous society. These are Access to Economic Opportunity for All (Inclusive Growth); Safety and Security; People (Human Capital Development); Infrastructure Development; Reform of the Bureaucracy (Ease, Speed, and Cost of Doing Business); and Economic Diversification/New Industries.
• Expounding on the economic diversification plan, the Prime Minister emphasized, “We must prioritise sectors that will drive future growth. There are numerous opportunities that have been discussed for years, but have yet to be fully realized on a significant scale.”
• Key areas for development include Tourism Linkages, aimed at strengthening the connection between agriculture and tourism. Initiatives like the Agri-Linkages Exchange Platform (ALEX) to reduce imports and increase local production will be key. Another priority is Logistics Hub Development, leveraging Jamaica's strategic location amid global trends toward nearshoring and friendshoring.
• Medical Tourism and Wellness will also be a focus, with the aging North American population presenting an opportunity for Jamaica to offer affordable, high-quality medical services alongside wellness tourism.
• The PM also highlighted the Digital Society Transition, with a vision to make Jamaica the Silicon Valley of the region. This includes initiatives like the National Identification System and expanding internet connectivity across communities. Prime Minister Holness also unveiled plans to accelerate the long-awaited Caymanas Special Economic Zone project, with infrastructure development set to begin by March 2025.

(Source: JIS)

• Barbados and the U.S. Export-Import Bank (USExim Bank) have signed a US$500Mn Memorandum of Understanding (MOU) to improve critical sectors, including renewable energy, cybersecurity, water and sanitation, and maritime domain awareness.
• The agreement, signed on Monday by Prime Minister Mia Mottley and USExim Bank Chairwoman Reta Jo Lewis, will finance U.S.-made goods and services for government projects that align with the island’s push for 100 per cent renewable energy by 2030 and enhanced digital security.
• Speaking during the signing event, Chairwoman Lewis said, “We see Barbados as a key country in the Caribbean where Exim can support impactful projects that improve lives and build economies.
• “From small-scale business support to large transformational infrastructure projects, Exim has the tools to help a wide variety of clients across Barbados.”
• Prime Minister Mottley described the agreement, which remains in effect through 2026, as a win for both nations, noting that the focus areas of the agreement “are all central to maintaining a healthy investment climate for future foreign investment in Barbados.”

(Source: Barbados Today)

• Brazil's government tightened spending controls late on Friday, freezing expenditure at 19.3Bn reais ($3.33Bn) to comply with this year's fiscal rules. The figure exceeds the 13.3Bn reais of spending announced in a previous report in September, according to a bi-monthly revenue and expenditure report from the Planning and Finance Ministries.
• The government also revised its 2024 primary deficit forecast to 28.7Bn reais, slightly up from the previously projected 28.3Bn reais, yet remaining within the fiscal target of a zero deficit for the year, which allows for a tolerance margin of 0.25 percentage points of GDP in either direction, permitting a shortfall of up to 28.8Bn reais.
• The 6Bn reais increase in the spending freeze came as the government projected higher mandatory expenditure for this year, primarily driven by higher social security benefits, which would have breached a legally established spending cap.
• The rapid growth of mandatory spending has fueled market concerns about the sustainability of Brazil's fiscal framework, affecting long-term interest rates. It also affected the Brazilian real, which has weakened more than 16% against the dollar year-to-date.
• Finance Minister Fernando Haddad said a long-awaited package to curb mandatory spending is expected to be announced next week. The government had indicated that the measures would be unveiled after municipal elections held at the end of October, but a delay in presenting the package has dampened market sentiment.

(Source: Reuters)

• Britain is imposing the biggest sanctions package against Russia's shadow fleet, targeting 30 vessels, according to foreign minister David Lammy on Monday. Lammy urged G7 allies to stand with and equip Ukraine for as long as it needs.
• Britain and other Western nations are keen to ensure Ukraine is in the strongest possible position to defend itself this winter. Lammy said before a meeting of G7 foreign ministers in Italy he was sure Kyiv (the capital and most populous city of Ukraine) would get "the funds and the military equipment and kit to get through 2025".
• "We are determined to ensure that both the ships, the enablers of those ships thwarting European and UK sanctions are hurt at this time," he said. Britain assessed that Russian President Vladimir Putin showed "no signs at all of wanting a negotiation" to end its war with Ukraine, he added.
• Publishing details of the sanctions, Britain said the ships being targeted had transported billions of pounds worth of oil and oil products in the last year, and the new measures would bring the number of oil tankers under UK sanctions to 73.

(Source: Reuters)