• Growth in the U.S. slowed considerably during the first three months of the year as interest rate increases and inflation took hold of an economy largely expected to decelerate even further ahead.
• Gross domestic product, a measure of all goods and services produced for the period, rose at a 1.1% annualized pace in the first quarter, the Commerce Department reported Thursday. Economists surveyed by Dow Jones had been expecting growth of 2%. The growth rate followed a fourth quarter in which GDP climbed 2.6%, part of a year that saw a 2.1% increase.
• The outturn in Q1 2023 came on the back of an acceleration in consumer spending, which was offset by businesses cutting back on inventory investment in anticipation of weaker demand this year amid higher borrowing costs.
• The report showed that the personal consumption expenditures price index, an inflation measure that the Federal Reserve follows closely, increased by 4.2%, ahead of the 3.7% estimate. Stripping out food and energy, core PCE rose 4.9%, compared to the previous increase of 4.4%.
• While the economy was not in recession last quarter, the outlook is darkening. Credit conditions have tightened following recent financial market turmoil, which, together with the Federal Reserve's fastest rate hiking cycle since the 1980s, have raised the risks of a downturn by the second half of the year.

(Sources: CNBC & Reuters)

• Tourism Minister, Hon. Edmund Bartlett, says the cruise industry is recovering strongly, following a lull due to the COVID-19 pandemic. Speaking at a destination assurance meeting in Ocho Rios, St. Ann, on April 20, Mr. Bartlett said Jamaica continues to see an uptick in cruise passenger arrivals, with approximately 855,000 visiting in 2022 and further indicated that 1.4 million passengers are projected to arrive during the current calendar year.
• The Minister said cruise lines have further demonstrated their confidence in Jamaica by recruiting approximately 10,000 Jamaicans to work on ships overseas in 2022. He highlighted that based on d discussions, with the executives of major cruise lines, Jamaica remains a first-call destination on their list, and should be seeing increased activity over the coming months.
• The cruise subsector is rapidly growing and becoming a viral component of the global tourism industry owing to pent-up demand. That said, the Royal Caribbean International (RCI) has committed to increasing the number of passengers brought to Jamaica in 2023 while strengthening its training partnership with the Caribbean Maritime University (CMU).
• The growth of cruise tourism in Jamaica presents a significant opportunity to drive the resurgence of the tourism industry, create employment opportunities, and contribute to economic growth in FY2023/24.

(Source: JIS News)

• The National Export-Import (EXIM) Bank has approved and disbursed loans valued at some $1.89 billion to 293 beneficiaries in the small and medium-sized tourism enterprise (SMTE) sector.
• Minister of Tourism, Hon. Edmund Bartlett, made the disclosure while opening the 2023/24 Sectoral Debate in the House of Representatives on Tuesday (April 18). The loans, arranged by the Tourism Enhancement Fund (TEF), are facilitated by the EXIM Bank so that business operators in the sector and Linkages Network have adequate access to financing of up to $25 million.
• “Small hoteliers, the person with a little Airbnb, can come and borrow at the lowest interest rate at the time of 4.5 per cent over five years. They can go and refurbish their places so that they can be asserted properly in the value chain of tourism,” Mr. Bartlett said.
• Meanwhile, the Minister said 437 beneficiaries, to date, have received financing valued at some $983 million, through the Jamaica National Small Business Loans Limited.
• Medium, small, and micro enterprises (MSMEs) are essential to the Jamaican economy, making up over 97% of the island’s taxpaying businesses. The sector is responsible for the majority of employment in Jamaica and drives economic growth and development. As such, the Government of Jamaica (GOJ) continuously seeks to strengthen the sector through programmes that support these businesses. Furthermore, this points to the government’s strategy to intensify its efforts to strengthen the tourism industry, as a chief driver of economic growth.

(Source: JIS News)

• Fitch predicts that Aruba’s real GDP will rise by 2.0% in 2023 (down from an estimated 6.2% growth in 2022) and by 1.2% in 2024 due to strengthening private spending, investment and government consumption. The Aruban economy will grow at a weaker pace than the Caribbean average of 3.2% through 2032.
• Private consumption will grow by 4.0% in 2023, from a 0.5% expansion in 2022, investments will expand by 3.0% (2022: 5.9%), while government consumption will advance by 1.9% in 2023 (2022: 0.8%).
• Additionally, although the government has run a relatively balanced budget in recent years, projected economic growth and higher revenue generation will narrow the fiscal deficit to 0.1% of GDP in 2023, from a deficit of 1.6% of GDP in 2022, and to a surplus of 0.4% of GDP in 2024.
• Revenues are expected to increase by 10.4% in 2023, after 28.8% growth in 2022, as the government implements more prudent fiscal policy measures to cut spending and boost revenues. Meanwhile, expenditures are anticipated to rise by 3.3% in 2023, after a 3.0% decline in 2022. As a result, it is expected that total government debt to GDP will fall to 79.5% of GDP in 2023, from 81.4% of GDP in 2022.
• It is anticipated that net exports will support the Aruban economy's 1.7% average expansion in the 10 years ahead. Net exports will contribute an average of 0.7 percentage points to real GDP from 2023 to 2032. Private consumption and government consumption expansion over the same period will also support overall economic activity.

(Source: Fitch Solutions)

• The Central Bank of Costa Rica lowered its benchmark interest rate by 100 basis points (bps) to 7.5% during its policy meeting on April 20, 2023.
• This followed a 50 basis point decrease in March which was the first rate cut in four years. Between December 2021 and October 2022, the Central Bank of Costa Rica (BCCR) raised the policy rate from 0.75% to a peak of 9%.
• Headline inflation and the average of core inflation indicators have shown a sustained downward behaviour since last September, reaching in March of this year inter-annual rates of 4.4% and 4.3%, although above the upper limit of the target range (3.0% ± 1 percentage point).
• The BCCR’s rate-setting board said there was space for “a less restrictive monetary policy posture”. The BCCR also acknowledged that uncertainty prevails in the global economy and that inflation has remained above the target ranges of central banks while the Core inflation indicators have shown greater downward rigidity.
• However, the recent tensions in the financial markets linked to the failures of some US banks could negatively affect the credit conditions in advanced economies, with adverse effects on international economic activity.
• The Central Bank of Costa Rica expects the 12 and 24-month annual inflation rates to come in at 4.9% and 4%, respectively.

(Source: Central Bank of Costa Rica)

• Credit Suisse said on Monday (April 24, 2023) that 61 billion Swiss francs ($68 billion) in assets left the bank in the first quarter and that outflows were continuing, underscoring the challenge faced by UBS Group in rescuing its rival.
• Customer deposits declined by 67 billion francs in the quarter and the bank noted many matured time deposits had not been renewed. "These outflows have moderated but have not yet reversed as of April 24, 2023," Credit Suisse said, adding that most of the money leaving the bank was from its wealth management division and occurred across all regions. The net asset outflow followed 110.5 billion francs pulled by clients from the bank in the fourth quarter.
• The 167-year-old bank reported results for what is likely to be the last time, as its state-engineered marriage with UBS is expected to be completed soon. Much of Switzerland's reputation as a trusted global financial centre - particularly for the ultra-wealthy - will rest on whether the two globally important systemic banks can be successfully integrated.
• Credit Suisse's ability to generate revenue appeared to be so damaged that "the deal could well remain a drag on UBS operating results unless a deeper restructuring plan is announced," London-based analyst Thomas Hallett at KBW said in a note to clients.

(Source: Reuters)

• Jamaica is listed as one of the countries currently on the Financial Action Task Force’s (FATF) increased monitoring/ “grey list”. According to the FATF, when it places a jurisdiction under increased monitoring, it means the country has committed to swiftly resolving the identified strategic deficiencies within agreed timeframes.
• Jamaica has a June 2023 deadline to comply with the FATF’s recommendations or the institution will take action against the country, which could include urging all jurisdictions to apply enhanced due diligence to business relations and transactions with Jamaica.
• According to the Minister of Finance, Dr. Nigel Clarke, as at March 30, the country was “compliant or largely compliant in 33 of 40 recommendations.” A part of this compliance comes from the recent ruling by the Privy Council relating to attorney-client confidentiality. The Privy Council ruled that the requirement for attorneys to report to the authorities whether their clients’ funds were obtained by illicit means does not breach the constitutional rights of those attorneys. As such, this is a critical component in addressing the probability of financial crimes being committed.
• Now the country is at the tail end of the timeframe of its commitments, and one of the areas that were still outstanding was to ensure that the beneficial ownership regime in Jamaica is consistent with international standards.
• To this end, the Minister said amendments are being made to the Companies Act to revolutionise and strengthen Jamaica’s beneficial ownership regime. Dr. Clarke explained that the passage of these amendments will address three of the outstanding items agreed on in Jamaica’s action plan with the FATF for the anti-money laundering and combatting the financing of terrorism (AML/CFT) framework. The Minister further advised that amendments will also be made to the Trusts and Cooperative Services Act.

(Source: FATF & JIS)

• The Government is well on the way to providing the committed 70,000 solutions to the housing market. The objective is to address a housing deficit of approximately 100,000 units in the country.
• Prime Minister, the Most Hon. Andrew Holness, said that the National Housing Trust (NHT) has pledged to deliver 43,000 of the 70,000 solutions and 35,000 of these are at different stages of development.
• “This means that they have [units] in the ground, they have come out of the ground, they have completed or they have plans they have drafted, they have identified the lands or they have identified the developers to build those houses,” he said.
• Holness provided the details while delivering the keynote address at a launch ceremony for Up-Cycled Container Homes being introduced to the market by Kingston Logistics Center (KLC) Limited on Wednesday (April 19).
• He pointed out that informal settlements and communities in need of housing upgrades will need “easily deployed solutions in the housing market”. It is against the background that Prime Minister Holness has welcomed the introduction of container homes to the local housing market. Further, the pre-built units can be constructed in a shorter time at affordable rates relative to traditional houses.
• “The size of the container home market in 2021 was estimated at $56.85 billion worldwide and it is expected to grow to $87.1 billion by 2029. We see how this is possible because companies that are involved in shipping, architecture, furniture, design and development, are merging the technology to provide solutions to meet housing demand,” Mr. Holness pointed out.
• KLC is an all-inclusive logistics facility with operations in Jamaica and Panama. The company provides logistics solutions across the Caribbean, including warehousing, distribution, packaging, shipping and exporting of consumer goods.

(Source: JIS)

• Guyana, a new oil producer, is at the peak of a new era of development with over 11 billion barrels of proven oil reserves, one of the highest per capita levels in the world, with GDP growth rates and fiscal revenues rising enormously over time.
• As part of aggressive climate change promises, the government of Guyana is also implementing an ambitious transformation for domestic electricity generation as outlined in the country’s Low Carbon Development Strategy (LCDS) 2030.
• The LCDS 2030 sets out four interlinked objectives for Guyana, namely, value ecosystem services, investing in clean energy and stimulating low carbon growth; protecting against climate change and biodiversity loss; and aligning with global climate and biodiversity goals.
• One of the first strategies implemented was a partnership between its government and the government of Norway. The partnership is aimed at preserving the quality of Guyana’s forests to help the nation meet its climate objectives and in the process, be paid for performance on this target resulting in earnings of over US$220Mn. Both countries will work together to provide the world with a relevant, replicable model for how REDD+ can align the development objectives of forested countries with the world’s need to combat climate change. REDD+ is a framework created by the United Nations Framework Convention on Climate Change (UNFCCC) Conference of the Parties (COP) to guide activities in the forest sector that reduces emissions from deforestation. 
• With these funds earned, a significant project on renewable energy is being implemented, the Guyana Utility-Scale Solar Photovoltaic Programme (GUYSOL), which commenced in June 2022. This programme will help the nation migrate, in about three years, to a grid that uses 19% renewable energy.
• The programme is anticipated to replace costly and environmentally damaging fossil fuels like diesel and heavy fuel oil used to generate energy and enhance Guyana’s LCDS goal of creating a cleaner and more diversified electrical generation matrix.

(Source: CariCris)

• The Bahamian international banking sector is contracting because the “retreat” of European assets is “outpacing” new growth from Latin America. That’s the proclamation from the Central Bank governor.
• John Rolle, in written replies to Tribune Business questions, acknowledged that the financial services industry has yet to regain momentum following two decades of scrutiny and regulatory pressures imposed by major world powers such as the Organisation for Economic Co-Operation and Development (OECD).
• In responding to the industry’s needs, the Central Bank has worked with industry and government to help introduce newly regulated products such as private trust companies (PTCs) and executive entities, which allow financial institutions to use additional regulated vehicles to serve their client needs. The use of these vehicles has increased over the last decade.
• “The retreat of the European business summarises the response to heightened scrutiny that international financial centres like The Bahamas have faced over at least two straight decades around anti-money laundering and tax transparency standards,” Mr Rolle stated.
• The development has continued despite The Bahamas’ removal from the Financial Action Task Force (FATF) List of Countries that have been identified as having strategic Anti-Money Laundering (AML) deficiencies back in 2020. The country was also de-listed from the European Union’s Blacklist in January 2022.
• In this regard, the Central Bank and other regulators continue to work to improve the jurisdiction’s anti-money laundering profile through national efforts to secure peer assessments that validate the effective and compliant standing of The Bahamas against the rest of the world.
• These measures include direct outreach to correspondent banks to ensure more accurate assessments of anti-money laundering risk management practices and an annual anti-money laundering research conference. These will aid banks and trust companies in maintaining solid correspondent banking relations, which are essential to the viability of their business models.

(Source: The Tribune)