Trade

Early trade gains wiped out

April 4, 2014 by IC Insider.com

Jamaica closed out 2013 slightly worse off in the trading account than for 2012 as the trade deficit increased by $56 million. This fully reverses the gains enjoyed to November when the deficit was down by US$289 million.

The out turn for 2013 flowed from expenditure on merchandise imports declining by US$113 million to US$6.22 billion compared to 2012 and a fall in export earnings of US$168 million to reach US$1.56 billion. The trade deficit for 2013 amounted to US$4.66 billion compared to the US$4.6 billion recorded for 2012.

Up to November 2013, imports fell by US$392 million and exports fell by US$112 million resulting in the trade deficit falling by 6.2 percent compared to the similar period in 2012.

Overall imports for the 11 months to 2013 was US$5,664 million, down from US$6.06 billion in the 2012 and exports US$1,442 million, resulting in a trade deficit of US$4.22 billion.

Filed Under: Breaking News, Economy Tagged With: Deficit, Economy, Trade

Jamaica’s trade deficit improves

March 3, 2014 by IC Insider.com

Jamaica’s trade deficit improvement experienced a recovery in the year to November 2013 as both imports, which fell by US$392 million and exports, down by US$112 million, resulted in the deficit falling by 6.2 percent or US$289 million when compared to the similar period in 2012.

Overall, imports for the 11 month period in 2013 was US$5,664 million, down from US$6,056 million for the same period in 2012 and exports of US$1,442 million, resulted in a trade deficit of US$4,221 million as reported by the Statistical Institute of Jamaica (STATIN).

Imports | Freezone activity accounted for US$295 million in imports, compared to US$352 million in the corresponding 2012 period. The category of Mineral Fuels, which accounts for 35 percent of the country’s import bill, fell by US$229 million to US$1,984 million compared to the same period of 2012. Machinery and Transport Equipment fell by US$20 million to US$831 million. Chemicals imports was valued at US$741 million, a decrease of US$80 million. Manufactured Goods fell by US$41 million or 7.1 percent to US$544 million. Spending on Food, however, rose by US$12 million to US$888 million as a result of the sharp rise in the price of basic commodities.

Traditional Exports | For the period of January to November 2013, the country earned US$724 million from traditional domestic exports which fell by 2.9 percent or US$22 million versus 2012 period largely due to the decline in Manufacturing exports. Non-traditional domestic exports fell by US$104 million or 13.9 percent to US$643 million compared with the first eleven months of 2012.

Trade with USA improves | The value of imports from the United States of America, a major trading partner, fell by US$145 million or 7 percent to US$1,940 million to November 2013 compared to the similar period in 2012. Merchandise exports sold to the USA fell by US$19 million to US$711 million resulting in the trade deficit of US$1,229 million, down from US$1,355 million for the similar 2012 period, a decline of US$126.5 million.

Trade with CARICOM worsens | Goods imported by Jamaica from the CARICOM region from January to November 2013 grew by US$4.5 million to US$822 million, due largely to increased expenditure on “Food” which increased by US$13 million to US$151 million. Total exports fell by 20 percent or US$15 million to US$63 million.

Filed Under: Breaking News, Economy Tagged With: Deficit, Economy, GOJ, Trade

USA trade deficit worsens, Caricom improves

February 17, 2014 by IC Insider.com

Trade deficit deteriorates with USA | Jamaica’s trade deficit with the United States of America (USA) to October last year resulted in savings of US$136 million, which flowed from a rise in exports and a reduction in imports. This is a decline from the position in August when there was a $212 million improvement.

At the end of the 2013 period, the trade deficit with the USA stood at US$1.1 billion, down from US$1.24 billion in the comparable 2012 period. The value of imports the during the January to October 2013 fell by US$103 million or 5.6 percent to US$1.753 billion compared to the same period in 2012 and exports rose by US$32 million or 5.2 percent to US$651 million, representing 49.6 percent of total earnings from exports.

Expenditure on goods imported from the USA accounted for approximately 34.0 percent of Jamaica’s total expenditure on imports.

Image courtesy of Sommai/FreeDigitalPhotos.net

Caricom trade improves | The trade deficit with the Caricom region for the year to October 2013 showed a US$65 million or 9 percent improvement over the similar period in 2012 with the deficit amounting to US$654 million, down from US$719 million in the comparable period of 2012.

Imports from CARICOM during January to October 2013, fell by 10.2 percent or US$80.3 million to US$709.6 million as a result of a decrease in expenditure on “Mineral Fuels, etcetera”. Up to August, imports fell by US$80 million as well and the reduction seems to have stabilised at a lower level than before. Expenditure on this commodity group accounted for 66.6 percent of goods imported from CARICOM during the 2013 period and imports fell by US$87 million or 15.6 percent to US$472 million in the current period. By comparison, in the January to October 2012 period, imports of “Mineral Fuels, etcetera” represented 70.8 percent of Jamaica’s total import bill with CARICOM.

Importation of “Food” rose by 9.3 percent or US$11.9 million to US$140.2 million. Spending on “Beverages & Tobacco” also rose marginally to US$33.4 million.

Total exports declined by 21.2 per cent or US$15.0 million to US$55.8 million during the January to October 2013 period. Domestic exports moved down from US$62 million to US$48 million because of decreases in “Chemicals”, “Misc. Manufactured Articles” and “Mineral Fuels, etcetera”. Earnings from these three commodity groups fell in the 2013 review period to US$5.1 million, US$3.4 million, and US$0.4 million respectively.

Related posts | Non-Traditional exports up | Caricom imports drop

Image courtesy of StuartMiles/FreeDigitalPhotos.net

Filed Under: Economy Tagged With: Deficit, Economy, GOJ, Trade

Trade deficit gains eroded

February 5, 2014 by IC Insider.com

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Jamaica’s trade deficit which saw an improvement for the year to August of US$300 million, suffered a setback by October when the deficit fell by US$210 million, an erosion of $100 million.

The deterioration came as total expenditure on imports during January to October 2013 fell by US$309 million or 5.6 percent, to US$5.16 billion compared to the same period in 2012, while earnings from exports fell by US$99 million or 7 percent to US$1.31 billion resulting in a decline in the trade deficit to US$3.84 billion, down 5.2 percent from the US$4.05 billion recorded in the January to October 2012 period.

“Mineral Fuels etcetera”, “Food”, “Machinery and Transport Equipment”, “Chemicals”, and “Manufactured Goods” were the top five commodity groups imported. Increased spending was recorded for “Food” which rose by US$11.3 million or 1.4 percent to US$807 million, up from the US$795 million accounting for 15.6 percent of imports.

The country imported “Raw Materials/Intermediate Goods” amounting to US$3.22 billion during the 2013 period, compared to US$3.438 billion in the comparable period in 2012, a 6.4 percent decrease amounting to US$218 million. Imports of “Other Fuels and Lubricants” fell by 15.2 percent to US$1.06 billion compared to the US$1.25 billion expenditure for the 2012 period.

Traditional Domestic Exports for the first ten months of 2013 earned US$653 million. Receipts fell by 6.1 percent or US42.6 million largely due to the decline in “Manufacture”. The “Mining and Quarrying” and “Agriculture exports” increase was insufficient to offset the overall decline in total exports during the 2013 period.

Non-Traditional Domestic Exports fell by US$71 million or 10.7 percent to US$589 million during the ten-months of 2013. Earnings represented 47.4 percent of total domestic exports, compared to 48.7 percent in the 2012 period.

Total exports of Non-Traditional declined by 21.2 percent or US$15.0 million to US$56 million during the January to October 2013 period. Domestic exports moved from US$62 million to US$48 million because of decreases in “Chemicals”, “Misc. Manufactured Articles” and “Mineral Fuels, etcetera”. Earnings from these three commodity groups fell in the 2013 review period to US$5 million, US$3.4 million, and US$0.4 million respectively. “

Filed Under: Economy Tagged With: Deficit, Economy, Trade

Caricom imports drop

December 6, 2013 by IC Insider.com

Imports from the Caricom region fell during January to August 2013 by 11.8 percent or US$80 million to US$599 million compared to US$680 million spent in the comparable 2012 period.

The decline of US$91 million to US$403 million for “Mineral Fuels, etcetera” was the main contributor to the decrease. “Food” valued at US$117 million increased from US$103 million in the corresponding 2012 period. Imports of “Beverages & Tobacco” and “Chemicals” were valued at US$28 million and US$17 million respectively in the 2013 period, compared to US$26 million and US$20 million respectively in the comparable 2012 period.

The value of Jamaica’s total exports of goods to CARICOM fell marginally by US$1 million to US$44 million during the review period.

During the eight month period, Jamaica narrowed the trade deficit by US$79 million to US$555.0 million, below the US$634.4 million recorded for the same period in 2012.

Filed Under: Economy Tagged With: CARICOM, Economy, Trade

Imports fall and deficit narrows

December 6, 2013 by IC Insider.com

The trade deficit for the year to August 2013 continues to narrow as imports fell 7.4 percent to US$4.123 billion compared to US$4.455 billion in the similar 2012 period. Helping to contribute to the improved position is a lower decline in export earnings of 2.8 percent to US$1.1 billion. The trade deficit improved to US$3.026 billion, compared to US$3.326 billion in the same period for 2012 for a US$300 million savings.

Imports | There was a general downward trend in the value of imports for all but three of the commodity groups. “Mineral Fuels, etcetera” with the highest value for this period, accounted for US$1,467.6 million, as it here was a fall of US$270.2 million or 15.6 percent. Imports of “Machinery & Transport Equipment”, also declined from US$616.3 million in 2012 to US$595.9 million. “Misc. Manufactured Articles”, declined by US$31.7 million to US$279 million, a fall of 10.2 percent, as there was a decline in the imports of furniture, footwear, apparel and photographic apparatus. “Beverages and Tobacco” valued at US$52.6 million moved down from US$54.4 million in the corresponding 2012 review period.

However, “Food” increased US$16.2 million to US$651.9 million compared to the 2012 period. The increase was a result of increased importation of ‘cereal & cereal preparations’, ’vegetables & fruit preparations’, and ‘miscellaneous edible products and preparations”, valued at US$549.5 million. The commodity group “Chemicals” increased by US$27.6 million or 5.3 percent compared to the US$521.9 million recorded in the similar 2012 period.

Traditional domestic exports | Earnings from major traditional commodities to August decreased by US$36.5 million or 6.3 percent to US$545.2 million compared to the same period in 2012, resulting from a US$44.3 million decline in the exports of “Manufactured” goods.

There was a decrease in the export of goods classified under “Manufacture” with earnings accounting for US$90 million, which fell below the US$134 million in the comparable 2012 period. “Mining and quarrying” rose by 1.2 percent to US$437 million as a result of increases in ‘Alumina’ and ‘Bauxite’.

The “Agriculture” sector saw receipts moving from US$16 million in the 2012 period to US$18.5 million during the 2013 review period. “Coffee” increased by 17 percent to US$14.6 million. “Citrus” earned US$3 million, a rise of 99.0 percent over the US$1.5 million recorded for the similar 2012 period.

Non-Traditional Exports | Earnings to August fell by US$14 million to US$489 million. Contributing to the decline were “Beverages & Tobacco” that fell by 37.4 percent or US$14 million to US$23.4 million. The sub-commodity ‘Alcoholic Beverages (excl. Rum)’ was responsible for this fall. This subcategory declined by 49.7 percent, moving from US$30.7 million to US$15.4 million in the current 2013 review period. ‘Tobacco’ fell by 73.4 percent. On the other hand ‘Non-Alcoholic Beverages’ increased to US$8 million, up from US$6.6 million in the comparable 2012 period, a rise of 19.7 percent.

The commodity “Other” fell marginally by 1.3 percent to US$345.3 million due to the fact that ‘Mineral Fuel, etcetera’ fell. “Crude Materials” rose mainly due to increased earnings from ’Limestone’ and ‘Other Crude Materials’. ‘Limestone’ moved from US$1.5 million in the similar 2012 review period to US$2.5 million, an increase of US$1 million. ‘Waste and Scrap Metals’ fell, moved from US$16.4 million in January to August 2012 to US$15.5 million in the comparable 2013 period.

“Food” recorded an increase, moving from US$96.0 million to US$99.4 million. Contributing to this increase was Yams’, one of the major export earner valued at US$15.8 million compared to US$11.9 million in the corresponding period.

Related posts | Big drop in trade deficit | Non-Traditional exports up

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Filed Under: Economy Tagged With: Economy, Trade

Jamaica trade improves with US

December 2, 2013 by IC Insider.com

Imports from the United States of America fell by US$212 million during the 2013 period to August with total imports valued at US$1.33 billion, compared to US$1.49 million in the 2012 period. Goods from the United States represents 32.2 per cent of Jamaica’s total import bill, compared to 33.4 per cent in the 2012 period.

Exports to the USA on the other hand, were valued at US$545 million, or 49.7 per cent of total exports of all goods from Jamaica. At the end of the 2013 review period, the trade deficit with the USA moved down to US$785 million, compared to US$997 million in the similar period in 2012.

Related posts | Big drop in trade deficit

Filed Under: Economy Tagged With: Economy, Trade

Big drop in trade deficit

November 5, 2013 by IC Insider.com

Jamaica enjoyed a big drop in its trade deficit in the first 7 months of the year as the deficit declined to US$2.64 billion compared to US$2.85 million in the same period for 2012 according to the latest data put out by the Statistical Institute of Jamaica (STATIN).

According to the Government’s agency for the collection of economic and other data, merchandise imports during January to July 2013 was valued at US$3.62 billion, a decrease of US$213 million when compared to the US$3.83 billion recorded in the similar period last year due mainly to a fall in the value of fuel imported. Earnings from total exports during review period was similar to the 2012 period both at US$978 million.

Statin sated in their release that the decline in imports was largely attributed to the decrease expenditure on “Mineral Fuels, etcetera”. Other areas showing decreases were “Machinery & Transport Equipment”, “Manufactured Goods” and “Miscellaneous Manufactured Articles”. “Mineral Fuels, etcetera” valued at US$1.28 billion, fell by US$241 million or 15.8 percent compared with the 2012 period. “Machinery & Transport Equipment” fell by US$5.3 million or 1.0 percent to US517.5 million and “Manufactured Goods” was valued at US$338 million, a decrease of US$35.3 million.

Traditional Exports | Earnings from major traditional domestic exports during the 2013 review period decreased by US$21 million to US$488 million due to the significant decline in ‘Manufacture’. Goods classified under the “Manufacture” group accounted for US$86 million, down from US$129.5 million in 2012 mainly due to the decrease in the export of ‘Sugar’ and’ Rum’. “Agriculture” group recorded an increase, earning US$17 million, as the major commodity in this group “Coffee” earned US$13.3 million compared to US$10.4 million in 2012. “Mining and Quarrying” earned US$385 million in the 2013 period.

Non-Traditional Exports | Earnings for this segment to July 2013 rose by 3 percent or US$12.8 million to US$442.4 million. “Other” non-traditional domestic exports rose by 8.1 percent to earn US$318 million. Of this amount, “Chemicals (incl. Ethanol)” earned US$99 million, an increase of US$47 million.

CARICOM | Imports from CARICOM during the first seven months was worth US$484 million but it decreased by 18.3 percent or US$108.5 million when compared to the same period in 2012. The decrease in the import bill was due mainly to lower imports of “Mineral Fuels, etcetera” as spending fell by US$120 million to US$314 million. “Manufactured Goods” recorded a value of US$13 million, down from US$15 million in 2012. Other decreases were seen in “Chemicals” and “Machinery & Transport Equipment” valued at US$15.7 million and US$6.0 million respectively. Three of the five commodity groups recording increases were “Food” valued at US$100.2 million, “Beverages & Tobacco” ( US$24.9 million) and “Misc. Manufactured Articles” ( US$8.4 million).

Total exports to Caricom declined by 3.6 percent during the review period. Domestic Exports accounted for US$33 million, and Re-exports US$6 million. The fall in domestic exports was due mainly to lower exports of “Chemicals”, which decreased by US$3.6 million or 51.0 percent to US$3.5 million and “Misc. Manufactured Articles”, which fell by 12.9 percent to US$2.2 million. However, “Food” the major export earner, increased and was valued at US$19 million, up from the US$17.5 million. Jamaica recorded a trade deficit of US$445 million with her CARICOM partners, down from US$552 million in the 2012.

Related posts | Non-Traditional exports up

Filed Under: Economy Tagged With: Economy, GOJ, Trade

Govt set to wipe out deficit

November 5, 2013 by IC Insider.com

The budget presented by the Government of Jamaica to the nation in April did not paint a full picture of what was on the cards. That is, the full wiping out of the fiscal deficit in one year and laying the foundation for a reduction in the heavy debt to GDP load the country has borne for decades. The government is well on target to do this based on the performance to September with a deficit of only $6.6 billion and the heavy inflow of taxes between January and March 2014.

After faltering in August partially due to the last day’s collections not counted in the August fiscal numbers, revenues in September shot past the forecast to land the overall year to date collections right on target but for a half a billion dollar shortfall, which was more than made up for by a near $11 billion savings on the expenditure side. The fiscal deficit is well ahead of forecast at just $6.6 billion versus a target at this stage of $17 billion.

Although revenues as a whole are on track, there are areas of concern where intake is less than planned by a fair degree. Capital and non-tax revenues are up by $5 billion year to date which helped to offset fall off in other areas. Also of note, travel tax, which is up by 69 percent due what the Ministry says is past due amounts that being collected, but this is not sustainable at the same pace going forward once the arrears are cleared.

Negative inflows | International trade is down year to date by $2.6 billion; this would have been far worse but for the positive collections for travel tax. Production and consumption taxes have not performed badly although down by $388 million from a forecast of $58.5 billion as education tax is down versus budget by 8 percent to $8.6 billion. Betting and gaming tax is down 38 percent at $1.13 billion. In the area of income taxes, PAYE is down by 6 percent or $2 billion to $30.4 billion, corporate taxes are up by $800 million as tax on dividends fell by $765 million or 57 percent against forecast. As government paid out less interest on the debt, the collection for tax on interest income fell.

Less debt | Government borrowed nearly $10 billion less than budgeted and cut the interest paid for servicing the monstrous debt by $5.6 billion. Payments for other housekeeping expenses other than wages declined by $2.6 billion, in addition $1.7 billion was spent on capital items during the six months period.