THE relaxation of COVID-19 containment measures and the rebound in tourism arrivals continued to have a growth-inducing impact on the economy in the third quarter of calendar year 2022 (July – September) as figures from the Statistical Institute of Jamaica (Statin) indicated a 5.9 per cent growth in gross domestic product (GDP) relative to the same period in 2021.

“This was a result of growth in both the services and goods-producing industries of 6.0 per cent and 5.6 per cent, respectively. The performance reflected the continued recovery of the economy from the impact of the COVID-19 pandemic,” Carol Coy, director general of Statin, said in a press briefing on Tuesday.

Within the services industries the hotels and restaurants industries recorded the highest growth of 35.3 per cent, having benefited from a 49.2 per cent jump in foreign national arrivals. Jamaica recorded increases from its three major tourism markets — the United States of America, Canada and Europe.

Growth of 13.1 per cent in the other services industry was also credited to the rise in the number of international tourist arrivals, with the recreational, cultural and sporting sub-industries benefiting from “the increase in stopover and cruise passenger arrivals as well as the revocation of COVID-19 containment measures”.

The transport, storage and communication industry was also impacted by increased activities in the tourism sector and recorded increased output of 5.9 per cent.

On the other hand the wholesale and retail trade, and the repairs and installation of machinery and equipment sub-industries grew by 5.3 per cent, where “higher output levels in the agriculture and manufacturing industries as well as the growth in imports were the primary contributors to this increase”, Coy shared.

Electricity and water supply grew by 3.9 per cent; real estate, renting and business activities, 3.3 per cent; finance and insurance services, 1.0 per cent; and producers of government services, 0.1 per cent.

Meanwhile, the agriculture, forestry and fishing industries contributed the higher portion of growth in the goods-producing sector, with a rise in output of 17 per cent.

“The performance of the agriculture, forestry and fishing industry resulted from growth in both sub-industries — that is, other agricultural crops — and this includes animal farming forestry and fishing which grew by 17 per cent; and traditional export crops which went up by 16.8 per cent.

With a 9.5 per cent improvement in production, the manufacturing sector was the only other category in the goods-producing industries to record growth.

Both the mining and quarrying industry and the construction industry showed declines in out — by 27.6 per cent and 3.1 per cent, respectively.

— Josimar Scott