• As the nation awaits the tabling of the 2025/26 Estimates of Expenditure on February 13, the business sector is optimistic of a strategic, forward-thinking Budget that addresses immediate challenges while laying the groundwork for sustainable inclusive economic growth.
• Speaking with JIS News, President of the Private Sector Organisation of Jamaica (PSOJ), Metry Seaga, who represents 1,890 members, says, “We are hopeful, and we are confident.” He says the PSOJ expects fiscal responsibility to remain entrenched within the national Budget going forward. He emphasised the need for continued streamlining of business registration and compliance processes to reduce bureaucratic hurdles that often impede growth.
• Prime Minister, Dr. the Most Hon. Andrew Holness, has announced the establishment of a Speed Task Force that will work to reduce bureaucracy and red tape as part of a broader strategy to foster a more efficient business environment and stimulate economic growth.
• In the meantime, the Jamaica Manufacturers and Exporters Association (JMEA), which has a membership base of more than 400 companies across various subsector groups, is looking forward to measures to boost competitiveness in the manufacturing sector.
• Among the key proposals is a reform of General Consumption Tax (GCT) to reflect payment on money collected and not invoice raised; greater support for renewable energy adoption by extending solar tax credits, currently available to residential households; and providing more affordable, quality factory space.
• Access to affordable financing remains a top priority through lower interest rates on loans offered by commercial banks and expanded access to low-interest financing options tailored for smaller businesses.
• There is also strong emphasis on workforce development and inclusion. Businesses are calling for programmes that integrate marginalised groups, including persons with disabilities, at-risk youth, and residents of underserved communities. This approach is seen as a win-win, further increasing employment while promoting social equity. With an eye on global markets, both Micro, Small, and Medium Enterprises (MSMEs) and manufacturers are seeking government backing for training, trade facilitation, and grants to help Jamaican businesses compete on the international stage.

(Source: JIS)

• Minister of Health and Wellness, Dr. the Hon. Christopher Tufton, says he is not opposed to recruiting from overseas to fill the nursing vacancies within the health sector. On average, some 500 nurses per year have left the system since 2018, including specialist nurses.
• “We want to engage our people first even before we seek to encourage and invite others to come in, but I don’t think we can leave that off the table either, to be totally frank. As you know, we have over 300 Cuban healthcare workers here in Jamaica and we do have from other nationalities,” Dr. Tufton said.
• “To fill the immediate gaps, if we can’t source locally, we have to explore other options, and I think the Philippines is a worthy partner,” he added. A Memorandum of Understanding was recently signed between the Philippines and the Ministry of Health and Wellness, providing for faculty exchanges, as well as specialist training and knowledge and experience sharing in the areas of biotechnology, epidemiology, and healthcare management, among others.
• “We’re building out hospitals now, which will give us more clinical rotation space. The Philippines has over 400 hospitals for the 100-plus million population. They have enough space to allow for some clinical rotation, so our people can go there as well as access… their faculty, either remotely or in person. So, that’s the first idea,” Dr. Tufton said.

(Source: JIS)

• With a diverse pillar of growth, Guyana is building an economy that could withstand global shocks, according to President, Dr Irfaan Ali.
• Appearing on a recent airing of the Energy Perspective Podcast, the Guyanese Head of State noted that while the country has a burgeoning oil and gas industry, it is critical for the government to pursue economic diversification and build out the other segments of the economy.
• In building these diverse pillars, he noted that Guyana and its neighbouring countries must continuously evaluate and examine potential opportunities across the region. The question that he believes is lingering, is how to ensure the investments in infrastructure and advanced development could create new growth areas locally but still be linked to the growth of the region.
• The aim is to leverage the raw production in Lethem, Region Nine and Northen Brazil and convert that raw production into value-added goods for not just Guyana, but the entire region as well. Ideally, with Guyana expected to reduce the cost of energy, it is expected that much traffic for trade and manufacturing is on the horizon.
• In 2025, Guyana’s economy is expected to continue its unprecedented growth this year, with a projected economic expansion of 10.6%. This growth will be supported by efforts in mechanisation and conversion, as well as value-added production.
• Additionally, rice production is expected to expand by 12.4%, reaching 804,000 tonnes through expanded acreage and improved crop varieties developed through research and development. The other crop sub-sectors are projected to grow by 11.7%, driven by expanded acreage and the country’s focus on strengthening local food security while livestock production is also expected to grow by 7.5% across all categories.

(Source: Guyana Chronicle)

• Services activity in Brazil ended 2024 on a negative note despite notching its fourth consecutive year of gains, with the sector unexpectedly slipping in December as the local economy provides cooling signs, data showed on Wednesday.
• According to statistics agency IBGE, services activity in Latin America's largest economy was down 0.5% in December from November, undershooting market forecasts of a 0.1% expansion in a Reuters poll of economists.
• Service sector activity is the main engine of Brazil's economy and helped the country grow more than expected throughout last year but has been slowing in recent months amid tight financial conditions. December was the second negative month in a row for the sector, with the fresh figures adding to data showing a drop in Brazil's industrial output in the month.
• "The consequence of this recent weakness in an all-important sector of the economy is that our nowcasters are falling further, suggesting downside risks to our GDP estimates," JPMorgan economists said in a note to clients.
• Three of the five main groups surveyed by IBGE were down in December on a sequential basis, according to the agency. The recent service sector weakness comes as Brazil's central bank tightens its monetary policy to return inflation to its 3% target. Policymakers at the bank last month delivered a 100-basis-point interest rate hike for the second straight meeting to 13.25% and signaled another hike of the same size in March while taking time to analyze activity data.
• On a yearly basis, Brazil's services activity grew 2.4% in December, while economists expected a 3.5% rise. In the full year the sector was up 3.1%, its fourth consecutive year of gains, IBGE said.

(Source: Reuters)

• U.S. consumer prices increased by the most in nearly 1 and a half years in January, with Americans facing higher costs for a range of goods and services, reinforcing the Federal Reserve's message that it was in no rush to resume cutting interest rates amid growing uncertainty over the economy.
• The hotter-than-expected inflation reported by the Labour Department on Wednesday, February 12, 2025, was likely partly due to businesses raising prices at the start of the year, evident in a record surge in the cost of prescription medication and an increase in motor vehicle insurance.
• The consumer price index jumped 0.5% last month, the biggest gain since August 2023, after rising 0.4% in December, the Labor Department's Bureau of Labor Statistics (BLS) said. Food prices rose 0.4% after increasing 0.3% in December. Grocery store prices surged 0.5%, with the cost of eggs soaring 15.2%, the largest increase since June 2015. That accounted for about two-thirds of the rise in prices at the supermarket.
• The report followed a pattern of CPI numbers overshooting expectations every January, which some economists said suggested that the seasonal adjustment factors, the model used by the government to strip out seasonal fluctuations from the data, were not fully accounting for the one-off turn-of-year price hikes.
• Nonetheless, they said the so-called residual seasonality was not responsible for all of the broad rise in prices, which offered a cautionary note to President Donald Trump's push for tariffs on imported goods that have been panned by economists as inflationary.
• Trump was elected on promises to lower prices for inflation-weary consumers. High inflation could imperil the Trump administration's agenda, including tax cuts, which could overstimulate a healthy economy, and mass deportations of undocumented immigrants that are seen causing labour shortages and rising costs such as wages for businesses.
• "The moderation we saw in consumer inflation last summer is no longer visible now," said Scott Anderson, chief U.S. economist at BMO Capital Markets. "The problem for the Fed is this isn't just a one-month event but looks like a real multi-month firming of inflation pressures."

(Source: Reuters)

• Israel's public broadcaster said on Wednesday, February 12, 2025, the U.S. had authorised a "long term" Israeli troop presence in southern Lebanon, after sources told Reuters Israel had sought an extension to a Feb. 18 deadline to withdraw its forces.
• Under a truce deal brokered by Washington in November, Israeli troops were granted 60 days to withdraw from southern Lebanon where they had waged a ground offensive against fighters from Lebanon's armed group Hezbollah since early October.
• Hezbollah combatants were to leave the zone and Lebanese troops were to deploy in the area within the same period.
• The initial deadline has already been extended from January 26 until February 18. A Lebanese official and a foreign diplomat in Lebanon told Reuters that Israel had now asked to remain in five posts in the south for a further 10 days.
• Israeli public broadcaster KAN later cited senior officials in Israel's security cabinet as saying that the U.S. had granted Israeli troops permission to stay "in several locations" in Lebanon beyond February 18. It did not specify a new deadline.

(Source: Reuters)

• Minister of Agriculture, Fisheries and Mining, Hon. Floyd Green, is calling for increased investment in organic greenhouse farming, noting that the innovative farming method has the potential to transform Jamaica’s agriculture.
• Speaking to farmers and other industry stakeholders at a recent meeting at the Rural Agricultural Development Authority (RADA) Parish Office in St. Elizabeth, Mr. Green said that greenhouse farming allows farmers to produce high-quality, premium crops with strong market demand, and open new export opportunities.
• He highlighted the urgent need for large-scale greenhouse projects, which could yield economies of scale and ensure consistency in both production and quality. These factors, he noted are essential for sustained agricultural growth and the long-term stability of Jamaica’s farming sector.
• Greenhouse farming offers a controlled environment where crops can thrive, thereby mitigating some of the risks associated with traditional farming methods. Therefore, crops such as tomatoes, potatoes, lettuce, garlic, strawberries, and bell peppers are suitable for greenhouse production. “These crops not only have significant local demand but also show promise for export” he emphasized.
• Organic certification of greenhouse products could open new avenues for Jamaican farmers to access premium markets. The minister said, “By focusing on organic farming, we can differentiate our products and command better prices on the international stage; this is an opportunity we must seize”.
• However, proper training and education are vital to ensure that farmers are equipped with the knowledge and skills necessary to manage greenhouse operations effectively and produce high-quality organic crops. “By investing in the infrastructure and training required for greenhouse farming, Jamaica could establish a robust organic farming sector that contributes to food security and economic growth,” he stressed.

(Source: JIS)

• Economist Jaime Aristy Escuder cautioned that the trade policies of former U.S. President Donald Trump could cause global economic instability and negatively impact the Dominican Republic.
• If the U.S. maintains a 25% tariff on Mexican goods, the Mexican peso could depreciate by up to 10%, making Mexico a more affordable destination and reducing the Dominican Republic’s tourism competitiveness.
• However, the trade war could create opportunities for the Dominican manufacturing sector. If the U.S. increases import costs from Mexico and China, American companies might relocate production to the Dominican Republic, benefiting the free trade zones.
• Aristy Escuder explained that Trump’s policy aims to boost U.S. domestic trade but has sparked retaliatory measures from Mexico and Canada, escalating regional economic tensions.
• He warned that these policies could slow U.S. economic growth, affecting global markets. Given the potential risks, he urged the Dominican government to closely monitor trade developments to mitigate possible negative effects on the national economy.

(Source: Dominican Today)

• The government of Trinidad and Tobago announced that the country has been removed from the list of nations identified by the Organization for Economic Co-operation and Development (OECD) as having harmful tax practices
• Finance Minister Colm Imbert confirmed that Port of Spain was officially delisted from this category in February 2025. This move reflects the country’s progress in aligning with international standards for tax transparency and regulatory compliance
• It joins Anguilla, Barbados, Bermuda, the British Virgin Islands, the Cayman Islands and the Turks and Caicos Islands whose policies are deemed not harmful. The OECD’s Forum on Harmful Tax Practices (FHTP) has been conducting reviews of preferential tax regimes for the last 25 years to determine whether the regimes could be harmful to the tax base of other jurisdictions.
• Base erosion and profit shifting (BEPS), where multinationals shift profits to low or no-tax locations where they have little or no economic activity or erode tax bases through deductible payments, such as interest or royalties, cost countries throughout the world billions in lost revenue annually.
• Imbert noted that BEPS practices undermine the fairness and integrity of tax systems because businesses that operate across borders can use them to gain a competitive advantage over enterprises operating at the domestic level. Imbert said in the new Special Economic Zones, a minimum global tax rate of 15 percent is imposed on multinationals operating in the country’s SEZs, in accordance with the BEPS standards.
• The Global Forum is a multilateral framework for tax transparency and information sharing, within which over 170 countries participate equally. The acknowledgement by the OECD that Trinidad and Tobago is no longer considered to have harmful tax practices is an important step in our journey towards full compliance with the Global Forum and the European Union.

(Source: Caribbean National Weekly)

• Wall Street's main indexes were mixed on Tuesday, February 11, 2025, while investors parsed Federal Reserve Chair Jerome Powell's latest comments.
• The U.S. Central Bank is in no rush to cut its short-term interest rate again given the economy is "strong overall", with low unemployment and inflation still above the Fed's 2% target, Powell said in opening remarks at a Senate Banking Committee hearing.
• Investors are also on the lookout for any new tariff comments from U.S. President Donald Trump, a day after he substantially raised levies on imports of steel and aluminium and said there would be announcements over the next two days about reciprocal tariffs on all countries that impose duties on U.S. goods.
• "Valuations are elevated, company guidance is measured, inflation is persistent, government policy is uncertain, tariff talk is ongoing and global tensions are elevated. So, in aggregate, the level of uncertainty is high, which implies increased volatility," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.
• "The Fed has so far, rightly, avoided commenting on the possible implications of the trade and immigration policies of the new administration, but the emergence of new details on tariff measures since last week offers a platform for Powell to add more specifics around the thought process," Societe Generale analysts wrote in a morning note.
• Powell's Senate testimony is the first of two days of hearings on Capitol Hill. He is set to speak to the House Financial Services Committee on Wednesday.
• Traders expect at least one 25-basis-point rate cut from the Fed this year, and a 44% chance of another reduction of the same magnitude, according to LSEG data.

(Sources: Reuters & Yahoo Today)