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 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.

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.

–KM