At the end of December 2018, The Bank of Jamaica’s Net International Reserves (NIR) stood at US$3,005.41Mn (+3.7% or US$106.91Mn), which translates to 32.80 (+0.99) weeks of Goods Imports or 19.47 (+0.59) weeks of Good and Services Imports.
The improvement in the BOJ’s NIR was primarily due to fact that it increased its holdings of Foreign Assets while keeping its Foreign Liabilities relatively constant.
In particular, the Bank held Currency & Deposits of US$2,960.02Mn at the end of December 2018, representing an increase of US$100.29Mn when compared with the US$2,859.73 reported the previous month.
On the other hand, amounts owed to the IMF, which was the Banks’ only liability item, increased marginally from US$526.07Mn at the end of November 2018 to US$526.63 at the end of December 2018.
According to Fitch, the Caribbean faces a number of significant economic and political challenges in 2019, most notably the potential for a slowdown in tourist arrivals amid weaker growth in developed markets.
While they expect most economies in the region will hold up relatively well in 2019, headwinds in traditionally dominant industries such as tourism and financial services and the growing strain of the Venezuela crisis on the region will likely become significant stories as the year progresses.
A team from the Barbados Ministry of International Business will travel this week to the Organization for Economic Cooperation and Development (OECD) in Paris, France, to attend the Forum on Harmful Tax Practice (FHTP) from January 9 to 11.
During the forum, the final review of Barbados’ response to the Base Erosion and Profit Shifting (BEPS) initiative will take place.
Barbados was one of the first countries in the world to converge its local and international tax rates, making its tax system globally competitive. From January 1, this year, domestic companies started paying the same tax rates as international companies. The move sought to bring the country in line with the BEPS initiative while avoiding severe international sanctions.
After the FHTP meeting, the OECD will disclose its decision about Barbados’ response to the BEPS initiative.
German industrial output unexpectedly slumped 1.9 percent in November in a broad-based decline led by consumer goods and energy.
Year-on-year output was down 4.7 percent, the worst performance since 2009.
The dramatic downturn raises the risk that Europe’s largest economy will slip into recession as expectations for a rebound, voiced by the country’s central bank, seem premature.
A barrel of West Texas Intermediate for February delivery was trading at $49.20 at 5:50 a.m., helping the commodity to its longest rally in almost 18 months.
Once again, trade talks are one of the main drivers of the recovery in crude, while expectations that tomorrow’s U.S. stockpiles data will show a drawdown are helping push oil back towards $50 a barrel.
Shipping data, meanwhile, shows OPEC is following through on its latest promise to reduce production.
The economic and trade relationship between Jamaica and the People’s Republic of China is very active, with some 15 Chinese companies operating in Jamaica with cumulative investments of US$2 billion.
This was disclosed by Counsellor for Economic and Commercial Affairs at the Embassy of the People’s Republic of China, Fan Jianghong, during a news conference regarding the sports cooperation programme with China, held at The Jamaica Pegasus hotel in Kingston on January 2.
He further disclosed that investments keep growing each month and that the two-way trade has more than surpassed what it was in 2017.
According to Fitch, Mexico's modest current account deficit will narrow over the coming years, with the shortfall covered by capital inflows.
Strong US demand for Mexican manufactured goods and improved terms of trade will narrow the goods trade deficit.
However, Fitch notes risks to its outlook due to uncertainty surrounding the US passage of a revised NAFTA, potential AMLO policy shifts and recent oil price weakness.
The economic and trade relationship between Jamaica and the People’s Republic of China is very active, with some 15 Chinese companies operating in Jamaica with cumulative investments of US$2 billion.
This was disclosed by Counsellor for Economic and Commercial Affairs at the Embassy of the People’s Republic of China, Fan Jianghong, during a news conference regarding the sports cooperation programme with China, held at The Jamaica Pegasus hotel in Kingston on January 2.
He further disclosed that investments keep growing each month and that the two-way trade has more than surpassed what it was in 2017.
Fitch Solutions expects the Central Bank of Trinidad and Tobago (CBTT) will continue a rate-hiking cycle in 2019.
Rising US interest rates will exacerbate T&T’s unfavorable interest rate differential, driving capital outflows and spurring the CBTT to raise its benchmark policy rate up from 5.00% currently.
Fitch revised its end-2019 interest rate forecast to 5.50%, down from 5.75%, in line with its expectation of subdued inflation and fewer rate hikes from the US Federal Reserve.
