KINGSTON, Jamaica—The People’s National Party (PNP) says Jamaicans need to brace for a possible contraction of the economy, based on recently released growth data and the emerging adverse global effects of the novel coronavirus, COVID-19.

The party pointed to Planning Institute of Jamaica statistics, which showed that in the final quarter of 2019, the Jamaican economy only grew at 0.1 per cent, and the projection for the 2019/20 fiscal year has been further reduced to 0.6 per cent. 

“With growth having ground to a virtual halt in the second half of 2019, and the impact of the coronavirus now looming, the Jamaican economy could well be headed into a period of economic contraction,” the party said in a statement

“Key sectors of the economy are already in negative territory, with the construction sector shrinking by two per cent in the fourth quarter of 2019, and bauxite/alumina in a deep tailspin with the closure of Jisco/Alpart,” Shadow Minister of Finance and Planning Mark Golding said. 

Golding further pointed out that several industries were at risk.

“Bauxite/alumina faces waning demand from the dislocation in China, tourism is vulnerable due to vacationers’ reluctance to risk international travel, and manufacturing is exposed to serious disruption in the international supply chain and much higher prices for alternative sources.” 

He added that there has already been a sharp reduction in logistics activity at the Port of Kingston, with port workers being told to take a pay cut or face layoffs.  

“It cannot be business as usual. It is clear the economy has been slowing, and serious challenges lie ahead. The Government needs to level with the people and indicate what measures will be pursued to mitigate the adverse impact of this economic storm on ordinary Jamaicans. The Opposition stands ready to join in a national response to the looming crisis, but the Government must lead and not bury its head in the sand as events unfold,” Golding said.