J’can economy declined by 3.5 per cent in July – September quarter

The Jamaican economy declined 3.5 per cent in the third quarter of 2024 compared to the same period in 2023 according to the Statistical Institute of Jamaica (STATIN).

STATIN said this was due to declines in the Services and Goods Producing Industries of 2.2 per cent and 7.2 per cent, respectively. It said the contraction was attributable to the battering the country took from Category 4 Hurricane Beryl which impacted the island on July 3 last year.

The 3.5 per cent decline as reported by STATIN is worse than the 2.8 per cent decline reported for the third quarter by the Planning Institute of Jamaica (PIOJ). The PIOJ has also projected that the December quarter could see further slippage of up to 1.5 percentage points.

STATIN, in its latest quarterly update said the Agriculture, Forestry & Fishing and the Mining & Quarrying industries were particularly affected by Beryl.

“Heavy rains and wind damaged mature crops, hindered harvesting, delayed planting and caused significant damage to one of the major alumina-producing plants. Significant damage to the Jamaica Public Service Company infrastructure caused delays in power restoration across several parishes, resulting in reduced electricity and water consumption. This adversely affected the performance of both the Electricity and Water Supply and Other Services industries,” said STATIN.

The Institute said real value added declined in all the Goods Producing Industries. Agriculture, Forestry, & Fishing fell by 12.5%, Mining & Quarrying (17.4%), Manufacturing (4.0%), and Construction (3.3%). In the Services industry, all industries declined except Finance & Insurance Services, which grew by 0.8 per cent, and Transport, Storage & Communication, which increased by 2.5 per cent. Real value added for the Wholesale & Retail Trade; Repairs; Installation of Machinery & Equipment fell by (3.0%), Hotels & Restaurants (6.2%), Real Estate, Renting, & Business Activities (3.2%), Producers of Government Services (0.5%) and Other Services (6.5 %).

Meanwhile, the economy contracted by 1.8 per cent compared to the previous quarter (April– June 2024), reflecting declines in both the Goods-Producing (4.5%) and Services (0.8%) Industries.