Planning Institute of Jamaica on economic meltdown

The Planning Institute of Jamaica (PIOJ) said the global economic meltdown would continue to have an adverse effect on the Jamaican economy this year.



PIOJ Director General, Dr Wesley Hughes said the prospects for the United States stimulus package to positively impact the country\'s economy are minimal.



Dr Hughes said there are no clear signs that the United States and Europe have made significant progress in their efforts to address the problems facing their banking systems.



He argued that a recovery in the US economy would not immediately affect Jamaica, as the country lags nine to 12 months behind North America.



Reviewing Jamaica\'s economic performance for the October to December quarter, Dr Hughes said real Gross Domestic Product (GDP) fell by about zero point seven per cent when compared with the corresponding period in 2007.



For the October 2008 quarter the goods producing sectors declined by two point six per cent while the services industries were flat.



The main contributor to the decline in the goods producing sectors was construction, recording an 11 per cent reduction.



All other industries in this category recorded growth with agriculture, forestry and fishing up by seven point five per cent.



Mining and quarrying grew by three per cent while manufacturing registered zero point one per cent growth.



Real value added for the calendar year 2008 was estimated at negative zero point four per cent.



The fiscal deficit for the review quarter was 32 point eight billion dollars, which was 13 point nine billion more than was budgeted.