Jamaica’s Q4 growth could hit 2%

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Bank of Jamaica (BOJ) estimates that the Jamaican economy grew, within the range of 1 to 2 percent for the December 2017 quarter. “With the exception of producers of Government Services, all sectors are estimated to have grown for the quarter,” BOJ said.
Both tradable and non-tradable industries are estimated to have expanded for the quarter with tradables estimated to have registered a faster pace of growth when compared to the non-tradables According to the central bank, the growth was also reflected in improved labour market conditions as unemployment continued to fall. Economic growth is forecast to be in the range chiefly reflective of expansions in Mining & Quarrying, Agriculture, Forestry & Fishing, Hotels & Restaurants, Construction, Manufacturing and Electricity & Water Supply. The central bank went on to state that for FY2018/19 and over the medium-term, economic activity is expected to expand within the ranges of 2 to 3 percent to 3.0 percent and 1.5 to 2.5 percent, respectively.

Bauxite mining

The central bank stated that “expansion in the economy was supported by the continued accommodative monetary policy stance. During November, the Bank reduced its signal interest rate, the interest rate payable on its overnight Certificate of Deposit by 25 bps to 3.25 percent on the assessment that inflation for the next four to eight quarters would remain within the target range of 4 to 6 percent. This accommodative monetary conditions continued to support growth in credit in the financial system with private sector financing by deposit taking institutions (DTIs) increasing by 9.1 percent for the calendar year to October 2017.”

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