Economy — Page 37

Government capital spend jumps $3.7b

February 1, 2016 by IC Insider.com

Peter Phillips – Minister of Finance

Government had budgeted to spend $1.6 billion in December but doled out $5.3 billion instead, bringing the full nine months capital spend to $26 billion, in line with budget. The increased spend in December wiped out the underspending of $4 billion in this line item up to November.
Tax revenues continue to be on a positive path, with $6.6 billion over budget but grants are below by $3.1 billion resulting in revenues surplus of $2.5 billion. Government over spent on wages in the tune of $2.3 billion taking the total spend to $126.6 billion but interest cost continues to be lower than forecast by almost $5 billion at $91 billion. Spending on other expenses was below forecast by $3 billion. The overall deficit was in line with forecast, at $14.7 billion and the primary surplus was nearly a billion more than planned at $66 billion.

Filed Under: Economy, Feature Stories Tagged With: GOJ fiscal deficit, GOJ primary surplus, GOJ revenues

Trade deficit continued to fall in 2015

January 31, 2016 by IC Insider.com

Jamaica’s merchandise trade deficit for 2015 continues to improve with the period to October showing a decline to US$3.1 billion, 12.6 percent or US$449 million less than the US$3.56 billion in the comparable 2014 period.
Imports stood at US$4.17 billion, a decrease of 13 percent amounting US$627 million, while earnings from exports amounted to US$1.054 billion, a decrease of 14.5 percent or US$179 million, compared to the similar 2014 period.
The main contributors to this overall decline in imports were Mineral Fuels that fell by US$668 million or 40 percent to US$1 billion in the 2015 period. “The reduction was due to lower volumes of crude oil and processed fuels as well as the fall in the prices on the international market’” the Statistical Institute of Jamaica (STATIN) stated in their release of the figures.
Traditional Domestic Exports – accounted for 66.2 percent of total domestic exports during the 2015 review period with the inflows being flat with that of 2014 at US$674 million. “Non-Traditional Domestic Exports earned US$344 million to October 2015, reflecting a 31.6 percent or US$159 million fall from 2014 as all sub-groups decreased,” STATIN stated in their release of the figures.
At the end of September imports in 2015 declined by US$581 to US$3.79 billion. Earnings from exports amounted to US$970 million, a decrease of 13 percent or US$145 million compared to the similar 2014 period leading to a narrowing of the merchandise trade deficit to September to US$2.82 billion, a fall of 13.4 percent.

Filed Under: Economy Tagged With: Statistical Institute of Jamaica

T-Bill rate slide continues

January 21, 2016 by IC Insider.com

Interest rates on the 91 and 182 days Treasury bill instruments fell in the latest auction of the short-term government fund raising issues. Rates on the 28 days instrument auctioned on January 13, rose as the amount chasing the $400 million on offer fell below the offered amount with $391,812,700 applied for, with the rate rising from 5.97% to 6.04%. The 91 days instrument saw a slight drop in the rate below 6 percent for the second consecutive month with an average rate of 5.94%, a fall from 5.96% with $636,369,700 chasing the amount of $400 million on offer and the 182 days instrument fell from 6.04% to 5.94% with applications amounting to $872,369,200 for the $400 million on offer.

Filed Under: Breaking News, Economy

Inflation lowest in 32 years in Jamaica

January 15, 2016 by IC Insider.com

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Fuel prices at the pumps in May 2015.

Prices in Jamaica rose during 2015 by their lowest in 32 years. One has to go back to 1983 to find a lower rate of increase with the rate for that year was up by 2.964 percent.

Last year prices increased 3.66 percent with the rate of increase in December being 0.2 percent. A major factor in the deceleration in average prices, is the sharp fall in the price of petroleum prices on the world market as well as some other imported commodities. The decline would have been even lower but for the fact the devaluation of the Jamaican dollar would have pushed up the prices of some goods or prevented some from falling even lower than they did. in addition increased taxation also prevented prices from falling further.

In 2015, the Jamaican dollar lost 5 percent of its value with about half of the increase feeding into inflation.

Filed Under: Breaking News, Economy Tagged With: jamaica inflation

1% growth in 2015 for Jamaica

January 1, 2016 by IC Insider.com

Manufacturing grew sharply

The Jamaican economy should record growth of about 1 percent for 2015 based on an increase of 1.5 percent in the September quarter last year over the similar quarter in 2014. The performance albeit small, would be an improvement over 2014 when the Jamaican economy eked out growth of 0.4 percent compared to the previous year.
In the first half of 2014, the Jamaican economy enjoyed growth 1.75 percent with negative growth in the latter half. Growth in 2015 will be the third year of increased output for the economy with very moderate growth for 2013 around 0.2 percent. Importantly, the latest data may be indicating that growth may be picking up pace and could be above 1.5 percent from now onwards, from very low levels, for the past three years.
Preliminary data from the Statistical Institute of Jamaica (STATIN) shows the 2015 performance in the latest quarter contrasting with an increase of just 0.6 percent in the second quarter, over the similar quarter of 2014 in real terms. Statin had earlier in the year reported that the Jamaican economy grew by 0.4 percent in the first quarter compared to the similar quarter of 2014.
The 2015 September’s quarter performance “was due to 3.9 percent increase in the
Goods Producing industries and 0.7 percent in the Services industries. All industries within the Goods Producing industries recorded increased output except Mining & Quarrying which declined by 0.9 percent,” Statin stated.

Agriculture, Forestry & Fishing grew by 4.2 percent, Manufacturing grew by 7.9 percent resulting from higher output levels in the Food, Beverages & Tobacco by 3.3 percent and Other Manufacturing 14.8 percent, due to an 82 percent increase in petroleum refining. This reflected a return to normal productive activity at the petroleum refinery during this quarter, as the plant was closed for operational maintenance in August and September 2014.
Construction increased by 0.7 percent, due mainly Statin said “to increased output from non-residential projects, which includes the continued expansion in hotels as activities in civil engineering works declined for the period”. Output from the Mining & quarrying industry was constrained by mechanical problems at one of the plants as well as the quality of bauxite mined, the report stated.
Improved performance in the Services industries resulted from increased output in all industries except the producers of Government services which declined by 0.1 percent. Increased value added was recorded for: Electricity & Water Supply up by 3.1 percent, Hotels & Restaurants 1.3 percent, Transport, Storage & Communication 1.5 percent, Wholesale & Retail Trade; Repairs; Installation of Machinery & Equipment 0.5 percent, Finance & Insurance Services 0.6 percent, Real Estate, Renting & Business Activities and Other Services 0.5 percent.
The Hotels & Restaurants industry continues to benefit from higher tourist arrivals from two of the main markets; the United States of America (USA) and Europe.

Filed Under: Economy Tagged With: Jamaica's gdp growth, Statin, Statistical Institute of Jamaica

Remittances slowed in September

December 29, 2015 by IC Insider.com

Remittance inflows for the 2015 to September were affected by a slowdown in inflows in September ending with US$1.65 billion, for an increase of US$51 million or 3.2 per cent over the nine months to September 2014.
The slowdown is a continuation from August, when inflows increased marginally.
After allowing for in outflows of US$167.7 million for the nine months to September, this year compared to US$170.4 last year, net remittances for the year to September, were US$1.48 billion, an increase of US$48 million or just 3.3 per cent over the similar period of 2014.
Gross remittance inflows for September 2015 were US$184 million, an increase of US$1.4 million or 0.7 per cent versus the same month in 2014. Remittance inflows also slowed in August 2015, with inflows amounting to US$186 million, for an increase of just US$1.7 million over August 2014. Total Remittance Outflows amounted $19.9 million slightly higher than the US$19.7 for September 2014, leaving net inflows were US$163.7 million, an increase of US$1.5 million, relative to the corresponding period of 2014.

Filed Under: Economy, Feature Stories, FX Market, Stock Market Tagged With: BOJ, FX Market, Jamaica's remittances, US Dollar

Treasury bill rates drop

December 18, 2015 by IC Insider.com

Rates of Government of Jamaica Treasury bills fell on the 91 day and 192 days instruments the government have been auctioning for some time, but rose slightly on the 28 days tenner as the amount applied for was well below the amount of $400 million offered.

182 days T-bill rates are down more than 50% since March 2014

The fall have brought the 182 days instrument down by 15.4 percent since December 2014, to 6.04 percent and the 91 days by 14 percent, down to 5.97 percent. The 28 day instrument is down by just 6 percent to 5.96 percent over the similar period.
Treasury bill rates have declined by 50.78 percent since peaking in March 2014 for the 182 day instrument based on the average rate on the latest offering. At the December auction, the average rate on the 91 days bills fell 18.8 basis points compared to the November rate. The 182 days instrument enjoyed only a 0.5 basis point fall and the 28 day instrument rose by 5.5 basis points.
A total of only $347,996,800 chased the $400 million on offer for the 28 days bills, $717 million went after the $400 million on offer for the 90 days instruments and $557 million went after the $400 million offered for 182 days.

Filed Under: Economy, Feature Stories Tagged With: TBills

Remittance inflows slowed in August

December 6, 2015 by IC Insider.com

Remittance inflows for Jamaica slowed in August 2015 with inflows amounting to US$186 million, for an increase of just US$1.7 million over August last year but after accounting for outflows, net remittances were US$165 million, an increase of US$1 million or 0.7 percent compared to the corresponding period of 2014.
The growth in net remittance inflows reflected an increase in gross remittances, partially offset by an increase in remittance outflows, the country’s central bank reported.
Net remittances for calendar year to August 2015 were US$1.32 billion, representing growth of US$46 million or 3.6 percent versus the similar period of 2014. The outturn for the period, reflected an increase in gross inflows, which was partially offset by a growth in outflows, with total inflows being US$1.47 billion, representing an increase of US$49 million or 3.5 percent. Remittance inflows for the period were above the corresponding pre-crisis outturn for 2008.
The USA contributed US$919 million to inflows, the UK accounted for US$214 million, Canada $151 million, Cayman US$84 and other countries made up US$100 million of inflows for the period to August this year.

Filed Under: Economy, FX Market, Stock Market Tagged With: BOJ, Jamaica's remittances, Remittances inflows

GOJ rakes in taxes hikes capital spend

December 2, 2015 by IC Insider.com

strong>Grants expected by government was off by $3 billion to October this year but a $6.7 billion jump in tax collection more than made up for shortfall and helped deliver a budget beating performance by $3 billion.
The positives on the revenue front helped to create a smaller deficit than planned by $14 million, an improvement of 44 percent.
With the fiscal year unwinding and the revenue gains, plus cost reduction elsewhere, the Government cut the under spending on the capital front from $6.5 billion at the end of September to $3.5 billion at the end of October. Interest savings keeps on climbing and now stands at $4.6 billion up from $3.4 billion at the end of September and could well end up around $10 billion by March next year. Wages that was underspent by $3.9 billion is down to just $1.6 billion below budget.
At the end of October the fiscal was deficit was $18 billion and the primary surplus $53.77 billion versus $44.3 billion planned.

Filed Under: Economy, Feature Stories Tagged With: GOJ fiscal deficit, GOJ primary surplus, GOJ revenues, GOJ tax revenues

Remittance inflows grow for Jamaica

November 14, 2015 by IC Insider.com

Remittance inflows for Jamaica rose 3.7 percent or US$6.9 million to US$190 million in July this year, over July 2014. For the year to date period total remittance inflows climbed 3.8 percent or US$47.5 million to US$1.28 billion.
After accounting for outflows, net remittances were US$168 million for July, an increase of US$6.9 million or 4.3 percent relative to the corresponding period of 2014. The growth in net remittance inflows reflect an increase in gross remittances while remittance outflows remained unchanged.
Net remittances for 2015 to-date are US$1.154 billion, an increase of US$45 million or 4.1 percent over the corresponding period of 2014. The out-turn for the review period reflected an increase in gross inflows, which was partially offset by a growth in outflows, Bank of Jamaica reported.
The flows for 2015 should exceed the US$2.157 billion the country received in 2014, if the trend continues.