Jamaica records historic 12.9 per cent growth in June quarter
Published:Thursday | August 26, 2021 | 9:47 PM
Steven Jackson, Staff Reporter
The economy grew at its fastest pace since independence during the June quarter ending at 12.9 per cent, data indicates.
For the corresponding quarter last year, it had contracted by 18.4 per cent.
“It is the highest ever in history,” said Minister of Finance and Public Service, Dr Nigel Clarke in reference to the second-quarter growth data.
The growth figures were released by the Planning Institute of Jamaica, (PIOJ) on Thursday.
Official quarterly data going back 25 years showed that the growth in the June 2021 quarter was more than thrice previous levels.
The exception being the 10.7 per cent recovery growth in the July to September 2020 quarter.
“This is what you call the beginning of a sharp V-shaped recovery. Still, a long way to go, however, and risks and uncertainties remain,” added Clarke in a tweet on Thursday.
Sector growth
*Services - 14 per cent increase
*Goods - 7.8 per cent increase
*Hotels and restaurants - 330 per cent increase
Topping the goods sector was the construction industry up 18.3 per cent reflecting higher levels of activities in construction and road projects.
The only industry suffering declines was mining down 12.3 per cent due to lower alumina and bauxite production.
The growth reflects some recovery from the stern lockdown measures imposed a year earlier to contain the transmission of COVID-19, according to the PIOJ which tracks the economy.
“Jamaica is operating below the output levels achieved in 2019,” said a PIOJ spokesperson in response to queries sent following the press briefing.
The institute said Jamaica is not expected to recover to pre-COVID-19 levels of output until 2023/24.
The outlook, however, remains positive with the July to September 2021 quarter expected to grow between 4.0 to 6.0 per cent.
The authorities also expect growth for the fiscal year to range between 6.0 per cent and 10 per cent.
The risks and challenges associated with that growth are the new variants of the virus and additional lockdown measures.
The PIOJ added in the briefing that the no-movement days which started this week and continue into next week, would not significantly affect the projected growth.
A year earlier, the economy suffered from curfews and the targeted closure of COVID-19 hotspots, schools and air and sea ports for a time.
In 2021, the country benefited from increased operating hours for businesses, increased construction, improved weather conditions which facilitated growth in agriculture and utilities, higher levels of employment caused by layoffs in 2020, and higher levels of business confidence, the PIOJ stated.
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