• Guyana is poised to welcome 350,000 visitors in 2024, reflecting a significant increase in its tourism sector. According to the Guyana Tourism Authority’s (GTA) Tourism Statistical Digest 2023, the country’s tourism industry has rebounded from the pandemic and surpassed its pre-pandemic visitor numbers.
• Director of the Guyana Tourism Authority (GTA) Kamrul Baksh highlighted in the report that international tourism reached 88% of its pre-pandemic levels, with global arrivals nearing 1.3Bn, as noted by the UNWTO World Tourism Barometer of 2023.
• Baksh projects a full recovery of international tourism by 2024, driven by factors like pent-up demand, expanded air connectivity, and a strong resurgence in Asian markets. “Guyana’s tourism industry is part of this global trend, which can be attributed mainly to the support received from both the private and public sectors,” Baksh stated.
• In 2023, Guyana saw an 11% increase in visitors compared to 2022, with a total of 319,147 tourists, marking an addition of 4,420 arrivals. Visitor numbers from January to April 2024 have shown a 12.4% increase over the same period in 2023, accounting for 112,751 visitors.
• The projection for 2024 is 350,000 visitors, bolstered by the addition of 595 new hotel rooms and major calendar events such as the Rupununi Rodeo, Mashramani, and Cricket Carnival. Other contributors to the anticipated growth include ongoing oil production, increased marketing efforts, product development, and major conferences.
• The trend is expected to continue in the coming years with more hotel completions significantly expanding the country’s accommodation capacity and a robust lineup of events.

(Source: Guyana Chronicle)

• U.S. existing home sales fell for a third straight month in May as record-high prices and a resurgence in mortgage rates sidelined potential buyers from the market. There was, however, encouraging news on the housing market with the National Association of Realtors reporting on Friday that housing inventory jumped last month to a two-year-high. Rising supply, if sustained, could curb further price gains and improve affordability.
• Nonetheless, weak home sales added to a sharp drop in housing starts and building permits last month suggesting that a re-acceleration in mortgage rates from April through May had sapped momentum from the housing market recovery.
• "Poor affordability and still-low, though rising listings in the resale market are keeping buyers at bay, with little change expected until the Federal Reserve reduces policy rates," said Sal Guatieri, a senior economist at BMO Capital Markets.
• Home sales dropped 0.7% last month to a seasonally adjusted annual rate of 4.11Mn units. Economists polled by Reuters had forecast home resales sliding to a rate of 4.10Mn units. Home resales, which account for a large portion of U.S. housing sales, decreased 2.8% year-on-year in May.
• The average rate on the popular 30-year fixed mortgage raced to a six-month high of 7.22% in early May before retreating to just below 7.0% by the end of the month, data from mortgage finance agency Freddie Mac showed.
• Sales dropped 1.6% in the densely populated South. They were unchanged in the Midwest, which is considered the most affordable region, as well as in the Northeast and West.
• Housing inventory increased 6.7% to 1.28Mn units last month, the highest since August 2022. Supply jumped 18.5% from one year ago. NAR chief economist Lawrence Yun noted that inventory vaulted 40-60% in Texas and Florida, which he partially attributed to soaring costs like property insurance.

(Source: Reuters)

• A sliding yuan and extensive cash outflows from the mainland into Hong Kong show China's domestic investors are shelving expectations for any immediate recovery in their home markets and fleeing to the closest better-yielding assets. The yuan has dropped to seven-month lows this week, alongside a reversal in equity investment flows into China.
• Analysts said Hong Kong's stockpile of yuan deposits has also grown as mainland investors use their limited offshore investment channels to seek higher yields and companies prepare to pay annual dividends, adding to the pressure on the currency.
• "Sentiment on China soured over the past month as the market has rallied ahead of improvement in macro data, which continues to disappoint," said Gary Tan, a Singapore-based portfolio manager at Allspring Global Investments. Tan, whose funds are underweight on Chinese stocks, said sentiment had come a long way from a time when mainland markets were considered "uninvestible", and he expected that it would improve further. However, investor patience has worn thin after months of waiting for authorities to roll out more stimulus, mainly to support a sinking property sector.
• The Shanghai benchmark stock index rose 20% between early February and mid-May, but is down 6% since. Foreigners who had returned to the market since February, after quitting in 2023, have turned sellers too this month, pulling out 33 billion yuan ($4.54 billion) via the northbound leg of the Stock Connect Scheme.
• Domestic investors have used the southbound leg to pump 129 billion yuan into Hong Kong. Analysts say investors have several reasons to pause and reflect, not just about how far the People's Bank of China will ease rates, but also on the approaching July plenum of China's Communist Party to shape economic and fiscal policy.

(Source: Reuters)

• Remittance inflows, which support consumer purchasing power, external account stability, and economic growth, fell for the month of March 2024.
• Net remittances to Jamaica declined by 1.1% (or US$3.1Mn) to US$279.2Mn in March, reflecting a US$4.1Mn (1.3%) decline in total remittances inflows, partly offset by a decline in remittance outflows of US$0.9Mn (4.7%). The decrease in gross remittance inflows reflected a -2.0% (or US$5.0Mn) decrease in inflows via Remittances Companies.
• The United States of America remained the largest source of remittance flows to Jamaica for March 2024. Remittances from the USA accounted for 69.8% of total flows, down from the 71.7% share recorded for March 2023.
• Other source countries that contributed a notable share of remittances for the month were the United Kingdom (10.6%), followed by Canada and the Cayman Islands (8.7% and 6.7%, respectively).
• Net remittance inflows for the 3-month period (January- March) also declined by (0.4% or US$3.5Mn) relative to the same period last year to US$797.1Mn. Despite the decline, 2024 remittances remain above 2019 (pre-pandemic) levels, with reported total inflows increasing by 43.5% (or US$241.8Mn) from US$555.3Mn in the corresponding period in 2019.
• This decline likely reflects normalisation of remittance flows following increases in 2020 and 2021, driven by stimulus packages issued by relevant government agencies in major source countries, as well as reduced disposable income due to higher inflation.
• Furthermore, with more Jamaicans employed, the need to send remittances may be diminished. Additionally, increased travel by Jamaicans from the diaspora bringing cash in hand may have also contributed to the decline.

(Sources: BOJ and NCB Research)

• Electrical, lighting and solar products distributor FosRich Company Limited through FosRich USA Inc. has entered the United States market by opening an office in Tennessee, strategically positioning itself to capitalise on opportunities, particularly under the Federal Government Infrastructure Program. The company intends to concentrate initially on three States, beginning with Tennessee.
• Last week, FosRich signed a lease agreement for a physical office space in Tennessee, outfitted the office and engaged staff to advance its data collection and market research efforts. Furthermore, FosRich would have also engaged potential suppliers to establish partnerships to support both its American and Jamaican operations.
• During the company’s annual general meeting on June 18^th, 2024, Cecil Foster, Managing Director of FosRich, highlighted that the company is working with small and medium sized businesses to supply hardware products.
• Additionally, the company has also been expanding locally. Construction of its new FosRich Superstore & Corporate Offices at 76 Molynes Road is now at an advanced stage, with the completion date projected to be at the end of Q3 2024. It has also recently opened new retail outlets in Drax Hall, St. Ann, and Montego Bay, St. James.
• Management noted that the company continues to implement its strategic plans, including plans for the expansion of revenues through the new superstore and all its offerings, the expansion of key product lines, and the driving of its export market thrust.
• Fosrich’s stock price has fallen 8.5% since the start of the calendar year. The stock closed Thursday’s trading session at $2.15 and currently trades at a P/E of 53.8x, which is well above the Junior Market Distribution Sector Average of 15.5x, suggesting that investors may still be optimistic about the company’s future growth prospects despite recent earnings decline.

(Sources: JSE, FosRich, and NCBCM Research)

• Exports from the Bahamas during the first quarter of the year saw a significant decrease of 44% compared to the same period in 2023, according to recent data from the Bahamas National Statistical Institute (BNSI).
• The latest figures reveal that total exports (including domestic and re-exports) for the first quarter of 2024 amounted to $95Mn, marking a substantial decline from the corresponding period last year.
• The primary export categories were ‘Food and Live Animals’ totalling $24Mn (25% of total exports), ‘Mineral Fuels, Lubricants, and Related Articles’ totalling $23Mn (24% of total exports), and ‘Crude Minerals’ totalling $14Mn (15% of total exports).
• The BNSI report highlighted significant declines in exports of Manufactured Goods Classified Chiefly by Materials, ‘Machinery & Transport Equipment’, and ‘Mineral Fuels, Lubricants, and Related Materials’, which saw decreases of 82%, 65%, and 54% respectively.
• Additionally, trade data showed that imports into the Bahamas amounted to an estimated $1.027Bn, representing an increase of less than 1% compared to the same period last year.

 (Source: Eyewitness News)

• The Central Bank of the Dominican Republic (BCRD) reported that remittances received between January and May 2024 totalled US$4,382.3Mn, marking a 5.0% increase compared to the same period the previous year.
• This continues the trend of year-on-year growth in remittance flows observed in 2023. In May alone, US$887.1Mn in remittances were received, a 0.7% increase over May 2023. These funds from the diaspora significantly impact consumption, investment, and the financing of the most vulnerable sectors in the country.
• The BCRD attributes the behaviour of remittances largely to the economic performance of the United States, from which 87.3% of formal remittances in May originated, amounting to US$713.8Mn.
• Remittances also came through formal channels from other countries, including Spain (US$39.4Mn, 4.8% of the total), Haiti (1.0%), and Italy (0.7%). Additional countries contributing to remittances included Switzerland, Canada, and Panama.
• Looking at the broader external sector, the BCRD expects foreign exchange earnings to grow favourably in 2024, driven by tourism, foreign direct investment (FDI), exports, and remittances.
• Estimates suggest that remittances and FDI flows will reach approximately US$10.4Bn and US$4.5Bn, respectively, by the end of the year. These inflows contribute to the relative stability of the exchange rate, with the national currency depreciating by 1.9% by the end of May 2024 compared to the end of 2023. Furthermore, increased external income flows have helped maintain robust international reserves, which stood at US$13,937.5Mn at the end of May, covering about 5.0 months of imports and equivalent to 11.3% of GDP, exceeding IMF-recommended thresholds.

(Source: Dominican Today)

• Traders upped bets for a Bank of England (BoE) rate cut in August, helping to underpin a pre-election rally for UK stocks and government bonds even though the central bank left rates on hold at a 16-year high on Thursday. After the BoE delivered its widely expected decision, it hinted that it was edging closer to cuts, prompting money markets to place a 44.0% probability on a move in August, up from around 32.0% a day earlier.
• Wednesday's data showing UK inflation has dropped to the BoE's 2% target have encouraged those bets. Investors now widely see rate cuts boosting the UK economy alongside a predicted landslide in the July 4 general election for the opposition Labour Party, which claims it can rebuild growth and run the country's debt-laden finances cautiously.
• "Rate cuts are definitely coming, and we have a stable outlook for government for the next few years," Morningstar European strategist Michael Field said.
• James Briggs, a portfolio manager at Janus Henderson, said he had a "relatively upbeat" stance towards UK stocks, corporate credit, and government bonds, known as gilts. He said UK equity and credit valuations did not yet reflect the economy's improving prospects and that gilts would benefit because "that tail risk of unorthodox fiscal policy is off the table. "Two-year gilt yields dropped to their lowest since March after the BoE's decision, LSEG data showed.
• Economists polled by Reuters expect the UK economy to grow by 0.7% this year, in an upgrade to earlier forecasts that had placed Britain at the bottom of the league table for predicted growth among advanced economies in 2024. Overall, the mood among investors towards the UK was buoyant as rate cut hopes added to the pre-election buzz.

(Source: Reuters)

• The head of the International Monetary Fund on Thursday called on Europe to achieve the full potential of its prized single market, lamenting what she described as a situation that makes the region look like “an ideas supermarket” for the U.S.
• Speaking to CNBC’s Karen Tso, IMF Managing Director Kristalina Georgieva said Europe’s economic performance was strengthening, and inflation was clearly on a downward trajectory. Georgieva said that the IMF is observing an uptick in consumption and expected interest rate cuts from the European Central Bank spelled out good news for investment in the eurozone. She said it would bolster the 20-member bloc’s economic performance.
• In May, the Washington, D.C.-based institute said in a blog post that an IMF report published in 2023 estimated that reducing remaining barriers to the single market for goods and services by 10% could raise European output by as much as 7 percentage points over the long term. “The euro area is now focusing on critical questions for the future. Among them, number one, how to lift up productivity at par with competitors, especially with the U.S.,” Georgieva said.
• The IMF chief reinforced the fund’s growth outlook for the eurozone, saying the bloc was on track to register a growth rate of 0.8% in 2024, compared with 0.4% in 2023 — and increase by 1.5% next year.

(Source: Reuters)

• iCreate Limited, which trades under the symbol ICREATE on the Jamaica Stock Exchange, resumed trading of its ordinary shares effective Wednesday, June 19, 2024.
• According to JSE’s Monthly Regulatory Report - February 2024, the company was suspended effective January 18, 2024, in keeping with JSE Junior Market Rule 505 – Ongoing Requirements, Section 14 – Delisting or Suspension 14 (a) (i), due to its failure to comply with the requirements of JSE Junior Market Rule Appendix 4 – Admission Agreement, Paragraphs 2 and 4.
• iCreate has since published a series of adjustments and addendums to its audited financial statements for the periods 2019-2023 and also included the outstanding shareholdings listing of Directors, Senior Managers and Connected Persons.
• The Jamaica Stock Exchange (JSE) advises that iCreate Limited has addressed all outstanding issues that led to the suspension of trading in its shares on the JSE on January 18, 2024. Therefore, the JSE has lifted the suspension of trading in the ordinary shares of iCreate Limited as the Company is now compliant with the Rules of the JSE.
• iCreate reported a net loss of $2.18Mn in its most recent quarter ending March 31, 2024,  which represents a $9.63Mn (or 81.5%) improvement relative to $11.81Mn loss in the prior period. This improvement was attributed to its acquisition of Visual Vibe.com, which delivered $14.0Mn in profit before tax, representing a $9.0Mn (or 178.7%) increase relative to March 2023. iCreate’s stock price closed at $0.41 before its suspension.
• iCreate’s stock price closed at $0.41 before its and has since increased by 19.5% to close Wednesday’s trading session at $0.49.

(Sources: JSE and NCBCM Research)