• Japan's economy grew much faster than expected in the second quarter as export volumes held up well against new U.S. tariffs, giving the central bank some of the conditions it needs to resume interest rate hikes this year.
• Gross domestic product (GDP) rose 1.0% on an annualised basis, government data showed on Friday, marking the fifth straight quarter of expansion after the previous quarter's contraction was revised to growth.
• However, analysts warn global economic uncertainties fuelled by U.S. tariffs could weigh on the world's fourth-largest economy in the coming months, especially as automakers struggle to keep prices down for American customers.
• "The April-June data masked the real effect of Trump's tariffs," said Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute. "Exports were strong thanks to solid car shipment volumes and last-minute demand from Asian tech manufacturers ahead of some sectoral tariffs. But these aren't sustainable at all."
• The increase in GDP was helped by surprisingly resilient exports and capital expenditure, and compared with median market expectations for a 0.4% gain in a Reuters poll. It followed a 0.6% rise in the previous quarter, which was revised up from a 0.2% contraction.
• The reading translates into a quarterly rise of 0.3%, better than the median estimate of a 0.1% uptick. The strong data contrasts with China, which saw factory output growth hit an eight-month low and retail sales slow sharply in July.

(Source: Reuters)

• Buoyed by robust sales volumes, Omni Industries saw its earnings rebound in the quarter ended June 30, 2025 (Q2 2025). Net profits totaled $51.75Mn, a 68.4% year-over-year increase.
• Revenues rose by 19.4% in Q2 2025 to $571.41Mn driven by sales volumes, particularly within the Company’s core construction-related product lines, which contributed 58% of total revenue.
• Cost of goods sold (COGS) also increased during the quarter, driven by a combination of external and operational factors. Global trade tensions, including the imposition of new U.S. tariffs on Chinese imports and heightened policy uncertainty, disrupted international supply chains and led to a rise in shipping cancellations. In response, OMNI temporarily sourced raw materials from non-traditional suppliers to maintain production continuity and fulfill customer commitments. While effective in safeguarding operations, this approach resulted in higher input costs, directly contributing to the 12.4% increase in COGS. However, the increase in cost of sales was outweighed by the pace of revenue growth, resulting in a 138bps improvement in gross margin to 35.9%.
• Similarly, operating expenses rose by a modest 4.0% to $171.92Mn, reflecting higher haulage costs and depreciation expenses associated with newly commissioned machinery. While these investments are expected to enhance future production capacity and product quality, the overall increase was partially offset by cost optimisation initiatives and ongoing efforts to improve internal efficiencies through automation.
• Despite the improvement in earnings during Q2, year-to-date earnings were down 23.7%, reflecting the impact of a weak first quarter during which earnings declined by 60.3%
• Omni Industries is executing a growth strategy focused on capital investment in production capacity, through machinery upgrades, and the expansion of its export footprint into key regional markets, including Nicaragua, Belize, and Barbados. Concurrently, the company is actively diversifying its supplier base to mitigate supply chain risk and reduce exposure to cost volatility. These initiatives are strategically aligned to enhance operational resilience, drive revenue growth, and deliver long-term value to shareholders.
• Despite the second quarter rebound, Omni’s stock price is down 28.4% since the start of the calendar year. The stock closed Thursday’s trading session at $0.78 and currently trades at a P/E of 20.5x above the Junior Market Manufacturing & Distribution Sector Average of 30.7x.

(Sources: JSE and NCBCM Research)

• Jamaica welcomed a record 286,548 stopover visitors in July 2025, marking the strongest July on record. This underscores the island’s continued global appeal. The figure represents a 16.5% increase over July 2024, when over 246,000 visitors arrived, and a 4.8% rise compared to July 2023.
• The strong summer arrivals are part of a long-standing tradition of Jamaicans in the diaspora returning home during the summer months. August, in particular, draws many visitors as the island comes alive with cultural festivals, concerts, and community events, offering returning residents a chance to reconnect with family, heritage, and the vibrant local lifestyle. The strong July performance also occurred despite stricter immigration polices in the US, which stirred fears that this could prevent US green card holders from traveling.
• The record-breaking July performance continues Jamaica’s strong momentum in 2025 and demonstrates a robust recovery in a sector that remains a cornerstone of the nation’s economy. The surge in arrivals is attributed to enhanced airlift capacity, successful marketing campaigns targeting key source markets, and the island’s diverse tourism offerings, ranging from beaches to cultural experiences.
• Jamaica continues to invest heavily in tourism infrastructure, accommodations, attractions, and transportation to sustainably meet growing visitor demand. These investments are aimed at enhancing the overall visitor experience, increasing destination competitiveness, and supporting long-term economic development, as tourism remains one of the country’s leading foreign exchange earners and a key driver of employment.

 (Source: Caribbean National Weekly)

• The Economic Commission for Latin America and the Caribbean (ECLAC) presented a new edition of its annual report Economic Survey of Latin America and the Caribbean 2025: resource mobilisation to finance development, in which it warns that the region continues to endure a prolonged period of low growth. It is estimated that real Gross Domestic Product (GDP) will grow 2.2% on average in 2025 and 2.3% in 2026, in line with the rates recorded in 2023 and 2024.
• In the Caribbean (excluding Guyana), growth is forecast at 1.8% in 2025 and 1.7% in 2026, marking a deceleration versus 2024. The slowdown is due to lower GDP growth in the United States, and the ensuing reduction in the demand for tourism services, in addition to lower global demand for services.
• The subregion continues to face high costs for energy imports and transportation, as well as notable exposure to natural disasters – factors that impact its external position and debt levels. In contrast, Guyana is seen maintaining high growth rates, thanks to continued investment in the hydrocarbons sector.
• The macroeconomic scenario for 2025-2026 will be marked by less dynamism in domestic aggregate demand. The regional macroeconomic environment will be characterised by weak domestic demand, particularly due to slower private consumption. In addition, international prospects remain unfavourable, limiting the external impetus for regional growth.
• In 2025 and 2026, global economic growth is seen easing as a result of multiple conditioning factors, including geoeconomic tensions and fragmentation, even more restrictive financial conditions, a weakening of international trade, and armed conflicts.
• This is compounded by intensified external vulnerability, reflected in the forecast for a larger current account deficit and in greater dependence on external capital. The report indicates that in the 2025-2026 period, the region’s balance of payments will continue to be subject to various risks, such as the worsening of geopolitical conflicts, the volatility of commodities prices and the synchronised deceleration of the world’s main economies.
• In sum, the report warns that the global and regional outlook for 2025 and 2026 is subject to great uncertainty. The growth dynamics of the region’s economies could deteriorate as a result of increased global risks.

(Source: Caribbean News Global)

• The Bahamas National Statistical Institute (BNSI) released its quarterly advance estimates for gross domestic product (GDP) for 2024, revealing that in the fourth quarter of 2024 (Q4 2024), the Bahamian economy grew by 7.6%, compared to Q4 2023.
• The advance estimates state: “The quarterly gross domestic product (QGDP) trends for 2024 show continued economic growth when compared to the corresponding quarters in 2023, with the exception of the third quarter, which recorded a modest year-over-year decline of less than one percent. The most notable increase occurred in the fourth quarter of 2024, which saw real QGDP grow by 7.6% in the period compared to the same period in 2023.”
• In the first quarter, real GDP increased by 5.8% compared to Q4 2023. In Q2 2024, real GDP rose a further 2.6% compared to Q1 2024, in Q3 2024, real GDP contracted by 5.1% compared to Q2 2024, and for Q4 2024, real GDP rebounded with a 4.4% increase over Q3 2024.
• The report noted that “The second quarter of 2024 recorded the highest real QGDP since the inception of the quarterly series. Key contributors to this performance include the industries of agriculture and fisheries, information and communication, electricity and gas, water supply and sewerage, and accommodation and food services. “
• On the expenditure approach to QGDP, growth was driven by increases in gross fixed capital formation, household final consumption expenditure, and exports of goods and services, particularly within the tourism sector.”

(Source: The Nassau Guardian)

• Britain's economy slowed less than expected between April and June 2025 after a strong start to the year, despite the shock of U.S. trade tariffs and a weaker jobs market. Official figures published on Thursday, August 14, 2025, showed that after an unusually strong 0.7% expansion in the first three months of 2025, gross domestic product grew 0.3% in the second quarter.
• The Office for National Statistics said British GDP fell 0.1% in April 2025 - a smaller decline than first thought - and dropped again in May 2025 before rising 0.4% in June 2025 with growth across services, industry and construction. Economists said much of the growth reflected higher public spending and businesses at home and abroad building up stocks of goods ahead of higher U.S. tariffs.
• The overall year-to-date budget results showed a $1.629Tn deficit, up 7.0%, from the same period a year earlier. Receipts were up 6.0%, or $262Bn, to $4.347Tn, a record high for the 10-month period, while outlays grew 7%, or $374Bn, to $5.975Tn, also a 10-month record. That was above the 0.1% forecast by the Bank of England and a Reuters poll of economists.
• Business investment fell by 4.0% from the first quarter and household spending growth was weak. "The continued reluctance of consumers to open their wallets is concerning," said Thomas Pugh, economist at accountants RSM UK. "We don't expect growth to pick up much from here as continued consumer caution, weaker global demand and tax increases all continue to drag."
• Most economists think Reeves will have to raise taxes in her annual budget in October or November 2025 - potentially by tens of billions of pounds - as a subdued growth outlook and high borrowing costs have made her budget goals harder to reach. "The UK is walking a narrow path between resilience and stagnation. Policy uncertainty in the run-up to the Autumn Budget risks tipping the balance," said CBI lead economist Ben Jones.
• Last week, the BoE forecast Britain's economy would grow 0.3% in the third quarter and 1.25% in 2025 as a whole. The strong growth in the first quarter reflected increased production to avoid U.S. tariffs and more property sales due to the imminent end of a tax break.

(Source: Reuters)

• U.S. producer prices increased by the most in three years in July 2025 amid a surge in the costs of goods and services. This outturn suggested that a broad pickup in inflation was imminent, posing a dilemma for the Federal Reserve (Fed).
• The stronger-than-expected producer inflation report from the Labour Department on Thursday, August 14, 2025, followed data showing consumers paid higher prices for services like dental care and airline fares last month. Also, there were no signs of further labour market deterioration in early August 2025.
• Economists had hoped that moderate services price gains would blunt the inflationary impact of higher goods prices from President Donald Trump's sweeping import tariffs. Though financial markets continued to anticipate the Fed would resume rate cuts in September 2025, some economists urged caution. "This is a kick in the teeth for anyone who thought that tariffs would not impact domestic prices in the United States economy," said Carl Weinberg, chief economist at High Frequency Economics. "This report is a strong validation of the Fed's wait-and-see stance on policy changes."
• The producer price index (PPI) for final demand jumped 0.9% last month, the largest advance since June 2022, after being unchanged in June 2025, the Labour Department's Bureau of Labour Statistics said. Economists polled by Reuters had forecast the PPI rising 0.2%. Notably, a 1.1% jump in the costs of services accounted for more than three quarters of the broad-based increase in the PPI.
• In the 12 months through July, the PPI increased 3.3% after advancing 2.4% in June 2025. Economists said the data suggested businesses were not fully absorbing the higher costs from tariffs as some had argued in the wake of a mild increase in consumer prices in July. "There continues to be clear evidence that prices of a number of durable goods are being passed through to consumers," said Michael Hanson, an economist at J.P. Morgan.

(Source: Reuters)

• For the quarter ending June 30, 2025 (Q3 2025), Salada Foods Jamaica Limited (SALF) reported earnings of $31.01Mn, marking a 51.1% year-over-year decline, as a blend of dwindling revenues and rising operating expenses brewed significant pressure on the company’s bottom line.
• Revenues for the quarter declined by 5.8% to $381.93Mn, largely driven by a decline in sales in the domestic market.
• Cost of sales declined by 0.8% during the quarter; however, the gains was partially offset by elevated input costs, particularly for raw materials and packaging. Combined with a suboptimal price adjustment, these pressures contributed to a 356bps compression in gross margin.
• Operating expenses rose 9.9% in the quarter, reflecting increased strategic investment in organisational capacity, alongside the impact of a non-recurring administrative expense.
• The quarter’s performance poured cold coffee over an already stale blend from the six months ended March 2025, brewing a bitter year-to-date result, with earnings declining by 26.1%, to $119.82Mn for the nine months ended June 2025.
• SALF’s stock price has decreased by 24.6% since the start of the calendar year. The stock closed Wednesday’s trading session at $2.91 and currently trades at a P/E of 20.8x above the Main Market Manufacturing & Distribution Sector Average of 13.0x.

(Sources: JSE and NCBCM Research)

• Despite solid growth in revenues for the quarter ended June 2025 (Q2 2025), the Jamaica Stock Exchange Group’s (JSE) earnings fell sharply (40.9%) to $45.28Mn, year-over-year, due to elevated costs.
• Revenues for the quarter reached $658.55Mn, reflecting a 14.9% increase compared to Q2 2024. Top-line growth was broad-based, with fee income rising by 13.5% and cess increasing by 20.7%, representing the primary contributors to the overall uplift.
• However, growth in operating expenses outpaced topline growth. Operating expenses rose (34.1%) to $607.85Mn for the same period in 2024. A significant net impairment loss on financial assets (+867%), increased staff costs (+14%) reflecting inflationary pressures and the onboarding of new personnel, higher property expenses (+37.8%), and additional operating costs (+86.3%) associated with expanded activities aimed at stimulating growth were the main contributors to the elevated costs.
• Consequently, despite the improvement in revenues during the quarter, earnings plunged to $45.53Mn from $76.99Mn.
• However, despite a challenging quarter, JSE reported a 66.2% increase in earnings to $112.20Mn for the six-month ended June 2025 (H1 2025). The H1 2025 outturn was underpinned by a strong first-quarter performance (+155.5%), which more than offset the decline in Q2 2025.
• That said, elevated interest rates have suppressed market activity over the past two years. However, with price pressures dissipating, interest rates could trend downward, allowing for an uptick in market activity and a potential increase in listings is anticipated. In this scenario, JSE stands to benefit directly from higher fee income and cess, which would ultimately support earnings growth.
• JSE’s stock price has decreased by 1.8% since the start of the calendar year. The stock closed Wednesday’s trading session at $12.95 and currently trades at a P/E of 14.9x above the Main Market Financial Sector Average 13.6x.

 (Sources: JSE & NCBCM Research)

• Trinidad and Tobago’s (T&T’s) economy relies heavily on petroleum exports, which provide about 80.0% of foreign exchange and support the import-driven onshore sector; however, resource depletion is reducing forex earnings and threatening living standards.
• The private sector has limited export capacity, making diversification a slow process; recent forex stability has been sustained by government reserves, savings, and debt, but this is unsustainable without new energy projects.
• The government is banking on Venezuelan gas exploitation and deep-water oil negotiations with Exxon-Mobil, which could bring major forex gains but carry economic risks and depend on external approvals.
• Long-term sustainability requires diversifying into higher-value, knowledge-intensive industries, which demand investment in human capital, Science, Technology & Engineering and Mathematics (STEM) skills, innovation, infrastructure, and institutional quality, alongside small and medium-sized enterprise (SME) and Research and Development (R&D) support.
• Building strong international trade networks, attracting foreign direct investment, and creating a national innovation system are key to overcoming private-sector rigidity and boosting economic complexity for export competitiveness.

(Source: Trinidad Express)