Jamaica’s Economy Contracted in First Quarter of 2013: Report

Above: Kingston (CJ Photo)

By the Caribbean Journal staff

Jamaica’s economy contracted by between 0.2 and 1.2 percent in the first quarter of 2013, according to estimates from the Bank of Jamaica.

For the 2012/2013 fiscal year, the economy is estimated to have contracted in the range of between 1 percent and 0 percent, according to Central Bank Governor Brian Wynter, who was speaking this week during the Bank’s quarterly media briefing.

“The estimated outturn for this quarter reflected the impact of drought conditions as well as weak domestic and external demand. In addition, continued uncertainty about prospects for the economy had a debilitating impact on investments and economic activity in general,” Wynter said.

For the 2013/2014 fiscal year, Jamaica’s GDP is projected to grow by between 0.5 and 1.5 percent, Wynter said. The International Monetary Fund’s most recent projection came in at 0.5 percent for 2013.

The Governor said the projected positive growth would come in part due to an “expected boost” in investor confidence thanks to the government’s agreement with the International Monetary Fund.