The Jamaican economy grew by an estimated 1.0 per cent in the April to June 2019 quarter compared with the corresponding quarter of 2018.

The Planning Institute of Jamaica (PIOJ), is reporting that this out-turn extends the positive growth trend to 18 consecutive quarters, that is, four and a half years.

Speaking at the PIOJ’s quarterly press briefing on the performance of the macroeconomy for the first quarter of the financial year on Monday (August 26), Director General, Dr Wayne Henry disclosed that the services industry, grew by 1.4per cent while the goods-producing industry was flat, recording 0.0per cent.

The quarter largely reflected increased activity at some industrial plants such as the Petrojam refinery, increased external demand, which drove output in some export industries such as the Hotels & Restaurantsand increased domestic for goods and services driven by the higher levels of employment.

Dr Henry pointed out that there was an estimated growth in Building Construction, reflective of the continuation of work started in previous quarters, as well as new building activities which commenced during the quarter.

These include 38 per cent increase in the number of housing starts by the National Housing Trust (NHT) to 999 units, relative to the corresponding quarter of 2018; and a 26.7 per cent increase in the stock of commercial bank loans and advances to $39.7 billion.

Dr Henry explained that “growth in the economy was, however, negatively affected by drought conditions, which led to a 2.5per cent contraction of the Agriculture, Forestry and Fishingindustry. The winding-down of several major infrastructure projects of the National Works Agency (NWA) such as the Hagley Park and Constant Road projects led to a reduction in expenditures by 28.2per cent to $3.6 billion.”

UPGRADING WORK PAYING OFF

Growth in the Services industry reflected higher real value added in all industries.

“This was influenced by electricity expenditure which was down 11.0per cent to $2.5 billion, arising from efficiencies at the Old Harbour power plant, which was commissioned last year. Continual upgrading of water supply facilities led to an increase in expenditure of 4.5per cent to $921.7 million,” Dr Henry explained

Transport, Storage & Communication grew by an estimated 1.4per cent, influenced by a 6.1per cent increase in total air passenger movement, which also impacted on visitor expenditure, which increased by 10.2per cent to US$852.7 million.

The Wholesale & Retail Trade; Repair & Installation of Machinery (WRTRIM) industry grew by an estimated 1.0per cent. Increased output in the industry was supported by growth in real value by 12.2per cent of ABM & point of sale transactions.

Also within that sector, Agriculture, Food, Beverages & Tobacco grew by 28.7per cent; Motor Vehicles, Auto Repairs & Accessories, were up 3.6per cent; Minerals, Fuels, Lubricants and Petroleum Products improved by 3.1per cent, while there was a 1.4per cent increase in Pharmaceuticals, Medical Goods and Cosmetics.

In the financial sector, the stock of commercial bank loans & advances to the housing industry increased by 26.7per cent to $39.7 billion. Real value added for the Hotels & Restaurantsindustry grew by an estimated 5.6per cent, reflecting an increase in foreign national arrivals, which went up by 7.8per cent.

STOPOVER ARRIVALS CONTINUES TO GROW

Total stopover arrivals grew by 8.4per cent and reflected stronger performance from Jamaica’s main source markets with the United States arrivals, up 11.8per cent to 489, 016 persons; Europe, up 2.4per cent to 75, 261 persons and Latin America, up 22.0per cent to 10, 285 persons. Stopover arrivals from Canada, however, contracted by 4.8per cent to 85, 712 persons and cruise passenger arrivals, contracted by 23.2per cent.

The PIOJ boss pointed out that this resulted in a 3.0per cent reduction in total visitor arrivals to 956,209 persons.