Economy contracts 9.4% during Oct to Dec quarter — PIOJ

Economy contracts 9.4% during Oct to Dec quarter — PIOJ

Tuesday, February 23, 2021

Print this page Email A Friend!

KINGSTON, Jamaica — The Planning Institute of Jamaica (PIOJ) says the economy declined by 9.4 per cent during the third quarter or October to December period of 2020 when compared to the corresponding period in the previous year.

The economy had previously contracted by 10.7 per cent in the July to September quarter according to data from the Statistical Institute of Jamaica (Statin).

Speaking at a quarterly briefing this morning, Dr Wayne Henry, director general of the PIOJ, said that the continued impact of the novel coronavirus pandemic and its imposed restrictions continue to negatively affect the economy along with the prospects for GDP growth.

During the period, preliminary estimates reflected that the goods producing industry contracted by 0.6 per cent and the services industry by 11.5 per cent.

There were also wholesale contractions across some major sectors such as agriculture, which declined by 6.1 per cent, manufacturing by 3.4 per cent and hotels and restaurants — under which tourism falls — by 52.8 per cent.

More positive results were presented for other key sectors such as mining and quarrying, which went up by six per cent and construction by 6.2 per cent.

The PIOJ, in its outlook for the current January to March quarter, however said that the economy is expected to contract within the range of seven to nine per cent based on early estimates.

“If this forecast is realised, it will represent the smallest rate of quarterly contractions for fiscal year 2020/21 and may be indicative of a gradual return to normalcy in economic activities relative to the preceding quarters,” Henry said.

The entity said that while growth is expected to resume during the first quarter of this year, it maintains current projections that the country will not return to its pre-COVID-19 level of output until the next three years or by FY2023/24.

Kellaray Miles

Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at




1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed:

6. If readers wish to report offensive comments, suggest a correction or share a story then please email:

7. Lastly, read our Terms and Conditions and Privacy Policy

comments powered by Disqus



Today's Cartoon

Click image to view full size editorial cartoon