• Chief Executive Officer (CEO) of the Jamaica Customs Agency (JCA), Velma Ricketts Walker, says the JCA has instituted several mechanisms and implemented several strategic initiatives that have further heralded the entity’s modernisation and transformation agenda.
• This, she said, is underpinned by the World Customs Organization (WCO) Revised Arusha Declaration, the leading guiding principles for integrity development within customs administrations.
• At the JCA’s annual anti-corruption panel discussion on August 30^th, The CEO noted that the strategic initiatives include an improved regulatory framework under the new Customs Act, now before Parliament, and the JCA’s reformed human resource management machinery evidenced by a more transparent recruitment process.
• Other transformational efforts include the digitalisation or automation of several trade and customs-related procedures and processes, driven by the customs management system, ASYCUDA. There is also the ongoing implementation of the Jamaica Single Window for Trade (JSWIFT). JSWIFT is an online platform that positively impacts trade and other border regulatory agencies.
• The CEO said the JCA is serious about preventing and combatting corruption, by implementing practical solutions. “Integrity is a crucial part of our operations at Customs and is one of our core values. The agency has strategically sought to institutionalise how we operate, through the establishment of an Internal Affairs Division, and further buildout of this division with the introduction of an anti-corruption and integrity section,” she informed.
• Mrs. Ricketts Walker said the most recent Customs Integrity Protection Survey (CIPS), in 2023, was a pivotal step in the JCA’s journey to enhance its operation. The primary goal was to measure stakeholders’ perceptions and identify areas needing attention. Additionally, she said that the introduction of the new Customs Act and the ratification of the Revised Kyoto Convention, which blueprints modern and efficient customs procedures, are also significant steps towards simplifying regulations and enhancing operational transparency.

 (Source: JIS)

• LIAT20 launched three new routes, expanding its network to Dominica, St Kitts, and Grenada. This development comes just weeks after the regional carrier’s initial launch earlier this month.
• LIAT20 is a collaboration between regional governments, mainly Antigua and Barbuda, and Nigerian carrier, Air Peace. The new carrier arose from the remnants of LIAT 1974, which served the Caribbean for almost five decades before the COVID pandemic exacerbated its long-standing financial troubles.
• The inaugural flight to Dominica, the ‘nature isle’ touched down on August 29, symbolising a new chapter in Caribbean air travel. Among the passengers was an enthusiastic and satisfied traveller who stated, “I always love flying with LIAT.”
• This expansion builds upon LIAT20’s successful launch on August 6, which initially connected Antigua, St Lucia and Barbados. With the addition of these three new destinations, LIAT20 now serves six Caribbean islands.
• In a move to make air travel more accessible, LIAT20 is offering competitive fares across its network. Passengers can now travel between the aforementioned destinations at least three days a week for a base fare of US$99, exclusive of taxes.
• Speaking at a ceremony in Dominica to mark the occasion, LIAT20’s Director of Operations, Arthur Senhouse, emphasised the airline’s broader vision. He highlighted LIAT20’s plans to “connect the region economically and socially”. Senhouse also extended an invitation to other Caribbean nations, encouraging them to “embrace the vision and play a part” in this regional initiative.

(Source: Antigua Observer)

• Fitch Solutions forecasts that Peru’s economy will grow by 2.8% in 2024 and 2.5% in 2025 after experiencing a contraction in 2023.
• Monthly growth has remained strong through the first half of the year, with an average of 2.5% for the first six months, compared to the 0.6% contraction last year.
• Fitch expects exports, especially of mined products, to remain strong, and private consumption to recover on the back of lower interest rates. These dynamics are also set to continue into 2025.
• Since 2024, inflation has remained moderate. Given this, Fitch now expects the Banco Central de Reserva del Peru (BCRP- Central Bank of Peru) to move some cuts to 2025 as opposed to making them this year. These lower interest rates will support further credit growth and consumption in 2025.
• Risks to Fitch’s medium-term growth forecast are skewed to the upside as recovering investment flows may add a stronger tailwind to mining and other sectors, beyond Fitch’s current expectations.

(Source: Fitch Solutions)

• China's manufacturing activity sank to a six-month low in August as factory gate prices tumbled and owners struggled for orders, an official survey showed on Saturday. Lower factory gate prices, which refer to lower quoted prices from manufacturers, excluding billed transport and delivery charges are pressuring policymakers to press on with plans to direct more stimulus to households.
• The National Bureau of Statistics purchasing managers' index slipped to 49.1 from 49.4 in July, its sixth straight decline and fourth month below the 50-mark separating growth from contraction. It missed the median forecast of 49.5 in a Reuters poll.
• After a dismal second quarter, China, the world's second-largest economy lost momentum further in July, prompting policymakers to signal their readiness to deviate from their playbook of pouring funds into infrastructure projects, instead targeting fresh stimulus at households.
• Sentiment remains gloomy among manufacturers as a years-long property crisis keeps domestic demand in the doldrums and Western curbs loom on Chinese exports like electric vehicles. Producers reported factory gate prices were their worst in 14 months, plunging to 42 from 46.3 in July, while the new orders and new export orders sub-indices remained firmly in negative territory and manufacturers maintained a hiring halt.
• "The fiscal policy stance remains quite restrictive, which may have contributed to the weak economic momentum," said Zhiwei Zhang, chief economist at Pinpoint Asset Management. "To achieve economic stabilisation, the fiscal policy stance needs to become much more supportive. With the U.S. economy slowing, exports may not be as reliable a source for growth as it was in the first half of the year," he added.
• Policy advisers are pondering whether Beijing may decide in October to bring forward part of next year's bond issuance quota if growth does not show signs of bottoming out in the summer. China made a similar move at the same time last year with stimulus that raised the deficit to 3.8% of GDP from 3.0% and frontloaded part of the 2024 local government debt quotas to invest in flood prevention and other infrastructure.

(Source: Reuters)

• European Central Bank policymakers are increasingly at odds on the growth outlook, a rift that could shape the rate cut debate for months, with some fearing a recession and others focusing on lingering inflation pressures, sources close to the debate said.
• The ECB cut interest rates in June and is almost certain to ease again in September in a nod to slowing price growth. However, policy decisions further down the road are likely to be more complicated as the eurozone economy enters a more precarious state, conversations with close to a dozen sources suggest.
• The core of the debate is over how weakness in economic growth and a potential recession will impact inflation - the bank's ultimate focus - as it tries to cut inflation to 2% by the end of 2025. Although much of the discussion is private, conversations with sources with direct knowledge of it reveal diverging views. An ECB spokesperson declined to comment.
• Policy doves, who remain in the minority, argue the economy is weaker than thought, recession risks are on the rise and firms that have hoarded labour are starting to cut vacancies, leaving the jobs market softer.
• Once employment declines, so does disposable income, quickly eroding consumption and leaving a self-reinforcing downturn. "This would weaken price pressures quicker than we now forecast, so I think the risk of returning to below-target inflation is real," one of the sources, who asked not to be named, said.
• This would suggest the central bank is behind the curve in cutting interest rates and buffering the economy, supporting the case for quicker interest rate cuts, they say. Inflation, down to 2.2% in August, is now forecast to rise again towards the end of the year and come back to 2.0% only in late 2025.

(Source: Reuters)

• Minister of Agriculture, Fisheries and Mining, Hon. Floyd Green, has expressed concern about the price gouging of agriculture products, particularly in the aftermath of Hurricane Beryl. Speaking during a media briefing at the Ministry’s offices in St. Andrew on Tuesday, Mr. Green said traders were allowed access to external markets to ensure the nation has adequate food supply.
• “Once we have adequate supply, from our perspective, we know what should be the regular price for a number of our agriculture products. I am concerned that our traders are not passing on savings for our consumers, and I am getting a lot of outrage around prices of things that have come from external markets that seem to be still bearing the same high prices, even though the cost of source for those items are low,” the Minister said.
• Mr. Green advised that he has raised the matter with the Minister of Industry, Investment and Commerce, Senator the Hon. Aubyn Hill, who has asked the Consumer Affairs Commission (CAC) to conduct an investigation.
• In the aftermath of the category-four Hurricane Beryl, the Agriculture Ministry, in fulfilment of its role of ensuring that Jamaicans have access to food, had allowed persons to “bridge the gap” where there is a shortfall in supply by accessing external markets for various fruits and vegetables. These included lettuce, tomatoes, sweet peppers, carrots, cantaloupes, honeydews, broccoli, cauliflower, zucchini, squash and melons.
• Minister Green said despite instances of price gouging, there has still been some improvement in prices over the last two weeks, pointing out that it could take up to six weeks for local production to be resuscitated.
• In the meantime, he has given farmers the assurance that sourcing some products externally is a “balancing act”, taking into account the levels of production and consumption at the time.

(Source: JIS)

• The repair bill for the 362 schools damaged by Hurricane Beryl in July has exceeded $3Bn. Preliminary estimates to undertake repairs were priced at $2.7Bn. The disclosure was made by Minister of Education and Youth, Hon. Fayval Williams, during Wednesday’s (August 28) post-Cabinet press briefing at Jamaica House.
• “Given that the number of schools assessed has increased, that figure would increase. More money will be required as we go through the school year. It’s now over $3 billion,” said Minister Williams.
• Of the 362 schools, 107 were severely damaged, 139 were classified as moderately damaged, while 116 received minor damage.
• Mrs. Williams said the Ministry has a better assessment now than it did in the immediate aftermath of Hurricane Beryl and will need to tap into the Supplementary budget. “We have to present the case to the Ministry of Finance and the Public Service, and on our side, we have to be efficient with the funds that were allocated to us, because it’s an additional burden on the national budget as a result of the hurricane,” Minister Williams said.
• She noted that the contractors are working in earnest to meet the September 2 deadline. “They are really pushing to ensure that they complete the work… For September 2, will the schools be at 100 percent? Maybe not, but they are saying what’s left to be done will not impact the opening of school,” the Minister said.

(Source: JIS)

• The Central Bank of the Dominican Republic (BCRD) has released preliminary economic activity results for July 2024. The monthly indicator of economic activity (IMAE) showed a 4.8% expansion for the month, with an average year-on-year growth of 5.0% over the first seven months of the year.
• Hotels, bars, and restaurants saw an 8.0% increase during this period, largely driven by the arrival of 5,286,325 tourists by air in the first seven months. While the sector had a 9.3% growth in July 2023, the 3.8% increase in July 2024 compared to the same month last year reflects a base effect from the previous year.
• July 2024 set a record for the highest number of non-resident air passengers for that month, with 811,192 arrivals. The year is expected to end with approximately 8.6 million tourists entering the country through various airports.
• This performance occurs in the context of price stability, supported by effective monetary and fiscal policies that have mitigated risks to the Dominican economy.

(Source: Dominican Today)

• The Bank of Mexico cut its forecast for economic growth this year and next, according to the central bank's quarterly report on Wednesday, August 28, citing weaker foreign manufacturing demand, while inflation remains stubborn.
• The central bank for Latin America's No. 2 economy now expects 2024 gross domestic product growth of 1.5%, down from a previous forecast of 2.4% and 1.2% growth in 2025 from a prior forecast of 1.5%.
• Banxico, as the central bank is known, said it had reduced this forecast due to weaker-than-expected second-quarter growth, noting external demand should remain soft due to expected weakness in U.S. manufacturing as well as fewer public infrastructure projects boosting domestic construction.
• Official statistics showed that Mexico's GDP expanded 0.2% in the second quarter from the previous three months, reinforcing a slowdown trend seen since late last year.
• Furthermore, the monetary authority raised its inflation forecasts and said it sees the balance of risks regarding inflation as biased to the upside after previously regarding this as balanced. However, it maintained its forecast that both inflation metrics should converge toward its 3% target by the fourth quarter of next year.
• The bank said in its report it expects the inflationary environment to allow discussion of further cuts to the benchmark interest rate. Earlier this month, Banxico lowered its benchmark interest rate by 25 basis points to 10.75% in a divided vote, signalling that prices could still rise higher than previously expected.

 (Source: Reuters)

• The U.S. economy grew faster than initially thought in the second quarter amid strong consumer spending, while corporate profits rebounded, which should help to sustain the expansion.
• Gross domestic product (GDP) increased at a 3.0% annualised rate last quarter, the Commerce Department's Bureau of Economic Analysis said in its second estimate of second-quarter GDP on Thursday. That was an upward revision from the 2.8% rate reported last month. The economy grew at a 1.4% pace in the first quarter. Economists polled by Reuters had forecast GDP would be unrevised at a 2.8% pace.
• Consumer spending, which accounts for more than two-thirds of the economy, increased at an upwardly revised 2.9% rate. It was previously reported to have grown at a 2.3% pace. This offset downgrades in business investment, exports, and private inventory investment.
• Spending is being supported in part by wage gains, but momentum is slowing as the labour market shifts into lower gear. Personal income increased by $233.6Bn in the second quarter, a downward revision of $4.0Bn from the previous estimate. Corporate profits, including inventory valuation and capital consumption adjustments, increased $57.6Bn after declining by $47.1Bn in the first quarter.
• Profits of domestic financial firms increased $46.4Bn, while those of non-financial institutions rose $29.2Bn, more than offsetting a $18.0Bn decline in profits from the rest of the world. When measured from the income side, the economy grew at a 1.3% rate last quarter. Gross domestic income (GDI) increased at a 1.3% pace in the January-March quarter.

(Source: Reuters)