The trade deficit for the first two months of this year widened despite exports growing faster than imports. The deficit was US$827 million compared to US$755 million in the similar 2012 period. Imports rose 12.5 per cent or US$127 million to US$1.148 billion from the same period in 2012. The bulk of the increase was occasioned by US$98 million rise in chemicals.

Exports | Grew faster than imports at an increase of 21.2 percent which generated US$321 million inflows, an increase of US$56 million. Mining and quarrying accounted for major part of the increase. But manufactured goods, which fell by US$23 million, prevented a steeper increase in export earnings. The decline may well be a timing difference relating to shipment of  sugar which is mostly exported in the early part of the year. Statin, who released the report, did not say which items resulted in the decline in manufactured goods. Investigations done by IC Insider confirms that in 2012 the sugar industry exported 40,000 tonnes of sugar between January and February at a value of US$37.5 million and this year only 19,130 was shipped in the same period with a value of US$16.6 million, a difference of US$21 million.

Imports | While imports rose, not all major categories rose as some items fell. Imports of Chemicals rose by US$178 million to US$276 million, due to higher imports of ‘Organic Chemicals’, ‘Plastic in Non Primary forms’, and ‘Medicinal and Pharmaceutical products’. “Food” increased by US$26 million to US$174 million up by 17.3 per cent. “Machinery and Transport Equipment” increased by US$5.7 million or 3.9 per cent to US$153 million this period.  “Mineral Fuels, etcetera” fell by US$89 million or 21.1 per cent and was valued at US$333 million. “Manufactured Goods” also declined by US$3.5 million or 3.5 per cent, and was valued at US$95 million down from US$99 million recorded in the comparable 2012 period.

Traditional Exports | This segment earned US$139 million during 2013 period, a decrease of 3.4 per cent, or US$5 million, due to the decline in earnings from “Manufactured Goods” which fell by 48.6 per cent from US$48 million to US$25 million. There was an increase in “Agriculture” earning US$3.4 million, 73.2 per cent above the US$2 million recorded in 2012. “Coffee” was the commodity which contributed to the overall increase in this category. “Mining and Quarrying” rose by 17.9 per cent, or US$17 million to US$111 million. Alumina earned US$90.3 million, moving up from US$74 million in the comparable 2012 period. “Bauxite” earnings grew by US$1 million or 4.4 per cent to US$21 million.

Non-traditional | Exports of non-traditional commodities earned US$170 million due largely to increases in the groups “Food’, and “Other Non Traditional Exports”.

The GOJ fiscal deficit for April was cut below projection, as revenues were marginally better while expenses, mainly interest cost, were lower than forecast. The deficit that was projected at $3.46 billion ended up $2 billion better, coming in at $1.43 billion.

Revenue growth | Tax on interest delivered $806 million more than planned, but the early payment of dividends in March by some companies resulted in tax on dividends under performing by $219 million. Special consumption tax brought in $735 million more and motor vehicle licenses accounted for $162 million of the increase and tax on telephone performed better than planned by $122 million.

Inflows below | There were areas that underperformed. GCT on local sales was 10 percent less reducing revenues by $666 million, surprisingly education tax was less by $144 million and betting & gaming tax brought in $188 million less than planned. Although travel tax was up 152  percent to $1.27 billion, an increase of $765 million tax on international trade was down $425 million as custom duty brought in $284 million less and Special Consumption tax on imports by $898 million. Tax on international trade may have been down as importers would most likely have brought in goods ahead of the new tax measures.

The government would have been pleased with the revenue performance which was slightly more than projected but which would have been even more had some taxpayers not taken advantage of the long time frame between increased taxes and the implementation of them to minimise their tax liability.

Spending down | Government paid $993 million less on interest or  13 percent less than originally planned and also spent less on wages $228 million and $384 million less on capital expenditure and they repaid $1.7 billion net on loans during the month.

Jamaicans were facing slightly lower rate of inflation in April than in the earlier months of the year as the consumer price index fell to 0.4 percent for the month, the lowest since the start of the year. This comes against increased taxation on a number of items beginning of April.

As the All Jamaica ‘All Divisions’ Consumer Price Index for April 2013 registered a 0.4 per cent rate of inflation., ‘Food and Non-Alcoholic Beverages’, the heaviest weighted division in the computation of the index, recorded an increase of 1.0 per cent. This was due mainly to the upward movement in the prices for, ‘Fruit’,’ Meat’ and ‘Bread and Cereals’. This division’s rate was however moderated by a 1.6 per cent decline in the rate for the division ‘Housing, Water, Electricity, Gas and Other Fuels’, the third heaviest weighted division in the Consumer Price Index Basket. This was the result of a reduction in the billing rate for electricity in April relative to March. All other divisions recorded increases lower than 1.0 per cent, with the exception of ‘Clothing and Footwear’, which increased by 1.1 per cent.

The other divisions that recorded increases were ‘Alcoholic Beverages and Tobacco’ 0.7 per cent,  ‘Furnishings Household Equipment and Routine Household Maintenance’ 0.7 per cent, ‘Health’ 0.2 per cent, ‘Transport’ 0.3 per cent, ‘Recreation and Culture’ 0.7 per cent, ‘Restaurants and Accommodation Services’ 0.4 per cent, ‘Miscellaneous Goods and Services’ 0.8 per cent,  No movement was recorded for ‘Education and ‘Communication’  .

The Statistical Institute of Jamaica collects and collates the data and compiles them into three regions. All three recorded increases; Greater Kingston Metropolitan Area (GKMA) 0.7 per cent, Other Urban Centres (OUC) and Rural Areas each  increased by 0.3 per cent.

The movement of prices reflected a calendar year-to-date increase of 3.2 percent.

Jamaica enjoyed some encouraging news at the start of the year as the country’s perennial trade deficit narrowed although by a small margin, according to data from Statistical Institute of Jamaica (Statin). Earnings from Non-traditional exports commodities that rose by US28.2 million or 47.5 per cent to US$87.7 million and a cut in the trade deficit with the USA and a reduction in CARICOM imports were the main contributors to this improved position. The deficit was reduced by US$1.2 million to US$401 million for the first month of the year. The improvement came against the back ground of a declined local currency and a sharp narrowing of central government’s fiscal deficit.

The deficit with the United States contracted sharply moving from US$116.4 million to US$78.5 million for the same period.

Jamaica exported 7.7 per cent or US$10.9 million more goods in January this year than was done for the similar month in 2012 resulting in earnings of US$152 million. Imports on the other hand, was a mere US$9.7 million or just 1.8 percent more in January than the same month last year as US$553 million was expended on imported items.

The major commodities to record increases were “Chemicals”, “Food”,“Misc. Manufactured Articles” and Imports of “Chemicals’ which rose sharply by 59.6 per cent or US$36.5 million to US$97.6 million due to higher imports of ethanol products. “Food” increased by US$30.5 million to US$92.2 million or 49.4 per cent and accounted for 16.7 per cent of the import bill. “Misc. Manufactured Articles” accounted for US$34.7 million of imports compared to the US$34.2 million in 2012. “Mineral Fuels, etcetera” which accounts for 32.2 per cent of imports declined by US$71.7 million or 28.7 percent and was valued at US$178.6 million while “Manufactured Goods” declined with a value of US$45.8 million down from US$49.5 million in the similar 2012 period.

Traditional Domestic Exports earned US$58 million in January 2013, a decrease of US$19.4 million or 25.1 per cent when compared to the same period in 2012, due to decreased earnings in two of the three commodity groups, “Mining and Quarrying” and “Manufacture”. “Mining and Quarrying” fell by 0.1 per cent to US$53.5 million in the 2013 review period due to lower earnings from Bauxite. This was valued at US$10.5 million, down from US$11.1 million.  “Manufacture declined by 85.0 per cent or US$19.4 million, moving from US$22.8 million in January 2012 to US$3.4 million in the current 2013 review period.

CARICOM Trade | The country imported US$56.1 million from CARICOM, a decline of 16 per cent amounting to US$10.7 million. A reduction in the value of imports in “Mineral Fuels, etcetera” and “Chemicals” contributed to the overall decline in CARICOM imports. “Mineral Fuels, etcetera” decreased by 30 percent or US$14.3 million to US$33.2 million.

Exports to the Region rose by US$0.5 million or 10.5 percent to US$5.1 million during January 2013. STATIN stated that during 2012, Jamaica’s expenditure on merchandise imports grew by  2.4 per cent or US$155.5 million  to US$6,594.9 million compared to the previous year. Earnings from total exports rose by US$87.5 million or 5.4 per cent to US$1,709.8 million.”