WITH the economy expected to decline between 12 and 14 per cent this fiscal year, Opposition spokesman on finance, Julian Robinson is urging the Andrew Holness-led Administration to focus on areas of intervention such as agriculture and digitisation to stimulate economic growth.

Addressing a meeting of the Rotary Club of Downtown Kingston on Wednesday, Robinson, who is also the chairman of the Public Accounts Committee of Parliament, argued that given the constraints Jamaica faces there has to be a very targeted and focused approach regarding the areas the Government wants to prioritise to achieve economic growth.

According to Robinson, if more focus is placed on the agricultural sector an opportunity will be provided for food security by growing what we eat and eating what we grow, while expanding exports.

“What the remittance story shows is that there are enough Jamaicans abroad who are willing to purchase the products that we have here in Jamaica,” said Robinson.

“There has to be a targeted approach of the agricultural sector, which would involve providing incentives for persons who are going to upgrade their equipment, providing incentives in manufacturing for people who invest more in technology, and providing incentives for persons who demonstrate some level of innovation — and that can take the form of tax breaks, concessionary loans and grants,” added Robinson.

He told the Jamaica Observer that access to loans at relatively low interest rates, funding for irrigation, and providing tax credits are initiatives which could drive production in the agricultural sector.

Pointing to the need to create a digital economy, Robinson noted that there are opportunities for Jamaicans to stay in the country to do business and offer services online to persons and entities abroad.

But, he argued that the quality of broadband services needs to be improved as this has come under a lot of pressure due to the work-from-home policy implemented by many entities since the onset of COVID-19.

“All the studies done by various institutions indicate that if you improve broadband penetration by 10 per cent, it can lead to an increase in GDP [gross domestic product] by one per cent.

“There are also studies that show that if you increase the speed of the Internet, you also see a direct correlation with economic growth because it facilitates other type[s of] industries developing — particularly the younger generation who are building apps and want to do streaming and video-type services. It gives them a better opportunity to compete globally,” said Robinson.

The Opposition spokesman also used his address to the members of the Rotary Club to renew his call for a new stimulus package for Jamaicans suffering the greatest economic fallout because of the pandemic.

Robinson again pointed out that Jamaica is running a fiscal surplus of 3.1 per cent, and repeated his argument that a one-per cent reduction in the surplus would free up about $20 billion, which could be used to facilitate a new stimulus package.

“One you inject money into the economy, it is money that is going to be spent. So even the direct assistance to the most vulnerable, that money is going to be used to purchase primarily food and other things which will create opportunities for local suppliers,” said Robinson.

He argued that Jamaica is not as bad as other countries which are running fiscal deficits and are still making and facilitating stimulus packages.

“We can find a way to do it. The question is, are we determined that we need to do it as a priority? If we don’t do something by the second quarter of this year — something which facilitates more economic activity — then our recovery is going to take a very long period and the very targets we are aiming for will have to be pushed down further,” declared Robinson.