Markets

The US Downgrade’s Impact on Jamaica

By: Caribbean Journal Staff - August 29, 2011 - 10:57 am

The downgrade of the United States’ credit rating by Standard and Poor’s earlier this month could have an impact on the Jamaican economy as part of increased global uncertainty, according to Bank of Jamaica Governor Brian Wynter.

The BOJ has “considered an extreme scenario of hte possible near-term impact on the Jamaican economy, if the downgrade of the US federal govenrment bond rating, and the factors which led to it, were to result in markedly slower growth for the US economy in the short term, leading in turn to a slowdown in the global economy,” he said.

Despite the potentially gloomy forecast, Jamaica’s economy could still record growth in the range of one to two percent in the fiscal year 2011-2012.

If this slower growth were to occur, he said, it would hit hardest the country’s mining industry, which reportedly saw an outstanding second quarter, according to the Planning Institute of Jamaica.

“The mining industry, for example, could see the largest fallout from reduced international demand for aluminium,” he said. “In addition, in light of reduced global income, particulary in the USA, Jamiaca’s largest source market for visitors, value-added in the hotel and restaurant sector could also expand at a signifcantly slower rate [this year].”

A potential silver lining to the downgrade’s impact could come in the form of an improvement in Jamaica’s account deficit.

–Jamaica Information Service

Popular Posts antigua long bay

25 Perfect Caribbean Beaches to Add to Your Summer Bucket List

There’s nothing like a Caribbean beach in summer. The crowds thin out, the winds relax, and the islands start breathing in a different way. The beaches you thought you knew feel new again— stretches of sand once packed with winter […]


Royal Caribbean’s New Cruise Ship Has a Rooftop Bar, a Waterpark and the Largest Pool at Sea

star of the seas

You step into a glass dome floating high above the ocean. To your right, divers plunge from platforms. Above, aerialists twist through light. Somewhere behind you, a DJ is spinning beside a suspended infinity pool. This isn’t a dream — […]


The 15 Best Hotels in Trinidad and Tobago, From Hidden Eco-Retreats to Luxury Towers

trinidad and tobago hotels where to stay

From Port of Spain to Tobago’s quiet coasts, these are the places to check in now No two Caribbean islands are quite like Trinidad and Tobago—and no two hotels here feel the same. This is a destination of contrast: Carnival […]


Related Posts montego bay jamaica beach

The Crystal-Clear Montego Bay Beach Locals Say Has Healing Powers

You arrive early. That’s the move here. Doctor’s Cave Beach opens at 8:30 a.m., and by then the sand has already been raked, the chairs are in rows, and the water is still glass. You step through the entrance on Jimmy […]


Ennismore Is Planning Its First Branded Hotels in Jamaica

a beach in negril

Global hospitality company Ennismore is making its debut in Jamaica. In partnership with LCH Development Limited, Ennismore will introduce two of its brands across three new buildings in a large-scale project that includes both residential and hotel components. Two of […]


Lisbon to Montego Bay: Jamaica’s New European Gateway Takes Flight

jamaica world2fly

Montego Bay just got a little closer to Europe. Starting today, Wednesday, June 4, Jamaica officially welcomes a new weekly nonstop flight connecting Lisbon, Portugal with Montego Bay. Operated by World2Fly, the service marks a major milestone in Jamaica’s growing […]