• Data from the Statistical Institute of Jamaica’s (STATIN’s) Labour Force Survey (LFS) revealed the unemployment rate stood at 3.3% in April 2025. The 3.3% rate marks a decline from 4.2% in April 2024.
• The total number of unemployed individuals amounted to 50,000, down from 62,800 in April 2024. Male unemployment was 2.5%, down from 3.3%, while females’ unemployment was 4.3%, down from 5.3% in April 2024. Meanwhile, the number of unemployed youth (persons aged 14-24) decreased by 9,800 to 19,600, representing a 33.3% total reduction.
• The labour force, consisting of 1,494,400 people as of April 2025, increased by 11,300 since April 2024. However, the total participation rate decreased marginally from 69.3%, down 0.5 percentage points compared to April 2024.
• Despite the decline in participation rate over 12 months, employment levels rose across most categories. The Employed Labour Force totalled 1,444,500 individuals, reflecting an increase of 24,200 persons (+1.7%) compared to April 2024. The number of employed males increased by 7,300 (+1.0%) to 769,500, while the number of employed females grew by 16,800 individuals (+2.6%) to 674,900.
• This growth was led by the occupation group ‘Services and Sales Worker’, reflecting an increase in employment of 21,200 persons (6.5%), while the ‘Professionals’ was the occupation group with the second highest increase of 7,000 individuals (5.7%).

(Source: STATIN)

• The Trump administration announced on Monday a duty of about 17% on fresh tomatoes from Mexico, which account for two-thirds of the tomatoes eaten in the U.S., and the end of an export deal between the two countries.
• The Commerce Department said the U.S. was withdrawing from a 2019 agreement with Mexico that suspended an antidumping duty investigation on Mexican tomatoes, whose exports to the U.S. are valued at $3 billion a year.
• The move came as President Donald Trump's administration seeks to negotiate comprehensive trade agreements with virtually every trading partner after the president launched a dizzying series of tariff announcements in April. The U.S. and Mexico first struck an agreement in 1996 to regulate Mexican tomato exports and address U.S. complaints of unfair competition. The pact was last renewed six years ago to avert an antidumping investigation and end a tariff dispute.
• Mexico said in April it was confident that it could renew the tomato agreement when Washington said it intended to withdraw from the deal. The 17.09% antidumping duty is set at the percentage by which exported Mexican tomatoes have been unfairly underpriced in the United States, it said.
• S. Commerce Secretary Howard Lutnick stated that for too long, farmers have suffered due to unfair trade practices that undercut the prices of produce such as tomatoes. Mexico's ministries of economy and agriculture said in a joint statement that the U.S. decision was "unfair" and against the interests of Mexican producers and the U.S. industry.
• Mexican tomato growers had offered proposals that were positive for the U.S., but were rejected for "political reasons," the statement added. A group of five Mexican agriculture associations, including from Baja California and Sinaloa states, said they were committed to working with the Mexican government to find solutions.

(Source: Reuters)

• Panama accumulated $4.98Bn in services exports in the first quarter of 2025, the highest figure for that period since 2023, leveraged by the interoceanic Canal, the logistics hub, and the Central American country’s ports.
• Foreign sales of services between January and March registered a 10.2% growth compared to the same period in 2024, said the MICI, citing data from the National Institute of Statistics and Census (INEC). The trade ministry noted that transportation was the main driver of the indicator’s performance, with revenues of $2.55Bn, boosted by the Panama Canal, the logistics hub, and the ports.
• It added that travel services, with $1.71Bn, showed a steady rebound driven by the recovery of international tourism. The “sustained” growth in the sale of services abroad is attributed to an economic policy geared toward the diversification and modernisation of the export offering. It was also supported by special regimes such as Multinational Enterprise Headquarters (SEM), Manufacturing Services (EMMA), and Free Trade Zones.
• Panama has thus consolidated its position as the largest exporter of services in Central America and the third largest in Latin America. As a result, the country is a strategic player in regional and global trade, with a robust platform that continues to grow and diversify.
• Panama’s gross domestic product (GDP) grew 5.2% in the first quarter of this year compared to the same period in 2024, driven primarily by the performance of the interoceanic Canal, according to INEC data. Panama’s GDP grew 2.9% in 2024, and the International Monetary Fund (IMF) expects it to expand 4% in 2025, above the regional expectation of 2% and the global expectation of 2.8%, the Ministry of Economy and Finance (MEF) highlighted.

(Source: Newsroom Panama)

• Rising prices across an array of goods pulled inflation higher in June 2025 in what economists see as evidence of the Trump administration's increasing import taxes passing through to consumers. Overall, consumer prices rose 0.3% in June 2025, a roughly 3.5% annual rate, after a 0.1% increase in May 2025. Notably, core inflation increased at a 2.9% annual rate in June, slightly below the 3% consensus forecast, but slightly faster than in May. Meanwhile, food and energy costs both increased, pushing headline inflation up to 2.7% from 2.4% the prior month.
• Economists and Fed officials say they were expecting inflation to gather pace this summer as the lagged impact of tariffs gets passed along by businesses, and the June 2025 data suggests central bank policymakers may remain reluctant to cut interest rates until more information is at hand. The tariff price shock could ultimately prove a temporary, one-time adjustment. But with the final tariff levels still being considered by President Donald Trump, and steeper levies threatened as of August 1, the inflation outlook remains unsettled.
• Head of Inflation Insights, Omair Sharif, stated that "Today's report showed that tariffs are beginning to bite, …apparel prices rose, household furnishing prices jumped ... and recreation commodities increased." These are heavily imported items and the increases were substantial. Prices for audio-video equipment rose 1.1% over the month and have risen 11.1% on a year over year basis, the largest jump ever in a category where globalization had generally meant steady or falling prices.
• It will likely strike a note of caution for the Fed, which has been facing almost daily criticism from Trump for not cutting interest rates, a step central banker have been reluctant to take until it is clear where the tariffs will leave the U.S. economy. In a speech in Washington Tuesday, Federal Reserve Bank of Boston President Susan Collins warned that she continues to expect the rise in import taxes to push up inflation while pushing down growth and employment. But she added strong balance sheets on both the business and household sides may help absorb the hit and lessen its impact.

(Source: Reuters)

• NATO Secretary General Mark Rutte warned on Wednesday that countries such as Brazil, China and India could be hit very hard by secondary sanctions if they continued to do business with Russia.
• Rutte made the comment while meeting with senators in the U.S. Congress the day after President Donald Trump announced new weapons for Ukraine and threatened "biting" secondary tariffs of 100% on the buyers of Russian exports unless there is a peace deal in 50 days.
• "My encouragement to these three countries, particularly is, if you live now in Beijing, or in Delhi, or you are the president of Brazil, you might want to take a look into this, because this might hit you very hard," Rutte told reporters, who met with Trump on Monday and agreed the new steps.
• "So please make the phone call to Vladimir Putin and tell him that he has to get serious about peace talks, because otherwise this will slam back on Brazil, on India and on China in a massive way," Rutte added. He also said that Europe would find the money to ensure Ukraine was in the best possible position in peace talks.
• Republican U.S. Senator Thom Tillis praised Trump for announcing the steps, but said the 50-day delay "worries" him. He said he was concerned that "Putin would try to use the 50 days to win the war, or to be better positioned to negotiate a peace agreement. "So we should look at the current state of Ukraine today and say, no matter what you do over the next 50 days, any of your gains are off the table," he added.

(Source: Reuters)

• Given the growth of Jamaica’s productive industries in the first quarter of 2025 (Q1 2025), Fitch Solutions has revised its 2025 growth forecast from 1.0% to 1.5%. However, while Jamaica’s economic expansion in Q1 exceeded Fitch’s subdued expectations, the agency continues to anticipate lacklustre growth for Jamaica in 2025. Ongoing trade tensions, sluggish tourism activity, and dampened external demand will continue to weigh on the Jamaican economy through year-end.
• With little to suggest that trade tensions will fully abate in the coming months, expectations are for growth in Jamaica to remain modest. However, risks to the outlook are tilted to the upside, with several domestic macro indicators giving reason for optimism.
• Jamaica continues to enjoy low unemployment (3.7% in Q1 2025) and stable inflation, which underpins the view that the Bank of Jamaica will cut its policy rate by 75bps through year-end, stimulating domestic consumption and investment.
• Additionally, remittance flows have remained resilient in 2025, supporting domestic consumption despite a downbeat United States (U.S.) growth outlook and onerous U.S. immigration policies. However, the One Big Beautiful Bill Act (OBBBA), approved by the U.S. Senate, introduces a 1% tax on international money transfers sent from the U.S. to recipients abroad. For Jamaica, the U.S. is the largest source market for remittances, accounting for around 70% of all remittances. As such, any slowdown in remittance transfers brought on by the new taxes could threaten Fitch’s growth outlook.
• Furthermore, while total bauxite production contracted slightly in April and May, total production rose 2.7% year-over-year (y-o-y) from January-May 2025 compared to the same period in 2024. Finally, Jamaica’s growth figures will see positive base effects in Q3 and Q4 as Jamaica continues to recover from Hurricane Beryl, which made landfall on July 3, 2024.
• That being said, weak external demand and a sluggish tourism outlook will continue to act as headwinds for Jamaica’s economy through the end of 2025. While total tourist arrivals increased by 4.1% y-o-y in April 2025, stopover arrivals (excluding cruise passengers) declined by 3.3% from January–April 2025 compared to the same period in 2024, with total arrivals down 7.9%, negatively impacting tourism-linked industries and Jamaica’s overall economic outlook.

(Source: BMI, a Fitch Solutions Company)

• Starting December 18, 2025, American Airlines is set to increase its flight capacity on key Jamaica to U.S. routes, with more flights into Kingston and St. Mary’s Ian Fleming International Airport, making travel more convenient for visitors and residents alike.
• Minister of State in the Ministry of Tourism, Senator the Hon. Delano Seiveright, noted that the expansion of American Airlines’ flight services to Jamaica is expected to result in a big boost for the upcoming winter tourist season.
• The increase will see American Airlines operate two daily flights between St. Mary’s Ian Fleming International Airport and Miami, a significant enhancement from previous schedules. Additionally, the airline will boost its service between Kingston’s Norman Manley International Airport and Miami from three to four daily flights, providing travellers with more flexibility and options.
• The expanded services are set to complement American Airlines’ existing summer operations, which currently feature 15 peak daily flights. With the winter schedule, the airline will offer over 20 peak daily departures to Jamaica, connecting the island with seven U.S. destinations, including Miami, New York, Boston, Philadelphia, Charlotte, Dallas-Fort Worth, and Chicago.
• The increased flights will not only benefit leisure travellers but will also improve logistical convenience for passengers whose final destinations include St. Ann, St. Mary, and Portland. “With flights landing directly into Ian Fleming International Airport in Boscobel, travellers arriving from long-haul flights will enjoy a shorter, more comfortable journey, avoiding the lengthy drive from Montego Bay. This development is expected to bolster tourism in the eastern parishes, providing easier access to attractions and accommodations in those regions,” Mr. Seiveright told JIS News.
• American Airlines’ airline’s decision to grow capacity in Jamaica by approximately 20% year-over-year underscores its commitment to strengthening its presence on the island and supporting Jamaica’s economic growth through tourism.

(Source: JIS)

• Despite record growth in recent years, the Dominican Republic’s aviation and tourism sectors are facing increased international competition and fluctuating global conditions, according to Jacqueline Mora, Technical Vice Minister of Tourism.
• Speaking at the International Congress of Finance and Audit (CIFA) and the Latin American Seminar of Accountants and Auditors (Selatca), Mora emphasized the need for strategic adaptation to maintain resilience and competitiveness.
• Mora highlighted that Asian countries are emerging as strong tourism competitors by developing new destinations, posing a direct challenge to Caribbean nations. In response, the Dominican Republic has focused on expanding air routes and increasing flight availability.
• As a result, South American tourism to the country has grown significantly, with visitors from the region rising from 8% to 15%, and Argentina becoming the top source of travelers.
• Despite global disruptions such as the COVID-19 pandemic, the Russia-Ukraine war, and instability in the Middle East, the Dominican Republic has shown resilience. Since the start of the year, Dominican Republic welcomed 6,145,008 visitors during the first six months of 2025—its highest tourism figure in history, and could reach 12 million visitors by year’s end.
• The launch of Arajet—a Dominican airline backed by foreign investment—has played a key role in that effort. In under three years, Arajet has become one of the country’s top five airlines and aims to position the Dominican Republic as a major Latin American air hub.

(Source: Dominican Today)

• Most of the Bank of Mexico's governing board supports smaller cuts to the key interest rate, minutes from June's rate decision showed on Thursday, signaling a more cautious approach as Mexico grapples with stubborn inflation and sluggish growth. All four board members who backed June's 50-basis-point cut — the fourth in a row — signalled openness to a slower pace going forward. At least two said the June move should be the last of that size.
• Annual headline inflation accelerated in May beyond the central bank's target range of 3%, plus or minus one percentage point. While it eased in June to 4.32% after four months of increases, it remains above target. Crucially, the core inflation index, a key gauge that strips out volatile prices, accelerated to 4.24% – its highest level since April 2024.
• For the board's majority, "the central argument is that the weakness in the economy will create slack conditions that would allow inflation to converge toward the 3.0% target," analysts from Actinver said. One of those governors noted the bank's current monetary policy stance "is appropriate to address risks to inflation on both sides of the balance," adding that "going forward, a more gradual approach will be adopted during the rate-cutting cycle."
• Another suggested that "adjustments of lesser magnitude" could be considered given the inflation outlook. Banxico, as Mexico's central bank is known, has cut its benchmark interest rate by 325 basis points since early 2024 and by 200 points this year alone, as inflation has eased from its 2022 highs.
• Deputy Governor Jonathan Heath, who cast the sole vote at the June meeting to hold the rate at its previous level of 8.50%, called for prudence while making his dissent argument. Heath said the expectation that inflation would naturally become low due to "greater slack conditions" is "unrealistic" because even though there is economic stagnation, current forecasts do not point to a deep enough recession that would sufficiently weaken aggregate demand.
• Analysts polled by the central bank in the second half of June forecast the Mexican economy growing just 0.2% this year. The central bank's latest forecast, in late May, estimated growth at 0.1% for 2025.

(Source: Reuters)

• President Donald Trump on Saturday, July 12, 2025, threatened to impose a 30% tariff on imports from Mexico and the European Union (EU) starting on August 1, 2025, after weeks of negotiations with the major U.S. trading partners failed to reach a comprehensive trade deal.
• In an escalation of a trade war that has angered U.S. allies and rattled investors, Trump announced the latest tariffs in separate letters to European Commission President, Ursula von der Leyen, and Mexican President, Claudia Sheinbaum, that were posted on his Truth Social media site on Saturday. The EU and Mexico, both among the largest U.S. trading partners responded by calling the tariffs unfair and disruptive while pledging to continue to negotiate with the U.S. for a broader trade deal before the deadline.
• Trump sent similar letters to 23 other trading partners last week, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20% up to 50%, as well as a 50% tariff on copper. The U.S. president said the 30% rate was "separate from all sectoral tariffs," indicating 50% levies on steel and aluminium imports and a 25% tariff on auto imports would remain. The August 1 deadline gives the targeted countries time to negotiate agreements that could lower the threatened tariffs.
• While some investors and economists have noted Trump's pattern of backing off his tariff threats, the spate of letters showed Trump has returned to the aggressive trade posture that he took in April when he announced a slew of reciprocal tariffs against trading partners that sent markets tumbling before the White House delayed implementation. But with the stock market recently hitting record highs and the U.S. economy still resilient, Trump is showing no signs of slowing down his trade war. He promised to use the 90-day delay in April to strike dozens of new trade deals, but has only secured framework agreements with Britain, China and Vietnam.
• Trump's letter to the EU included a demand that Europe drop its own tariffs. Von der Leyen, said the 30% tariffs "would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic." The EU had been scheduled to impose “countermeasures” starting Monday, July 14, 2025, at midnight Brussels time (6 p.m. EDT), however, the retaliatory tariffs have been suspended in hopes of reaching a trade deal with the Trump administration by the end of the month.

(Source: Reuters & Global News)