Durrant Pate/Contributor

The Jamaican economy grew by 1.9 per cent for the October–December 2023 quarter, relative to the corresponding quarter of 2022, according to the Planning Institute of Jamaica (PIOJ). 

The estimated out-turn for the review quarter largely reflected the impact of higher levels of employment, which drove firms to increase operations to meet the growth in demand and increased productive capacity in the ‘Mining & Quarrying Industry’, which facilitated an increase in alumina production. This, is in addition to increased Consumer confidence, associated with the perceived favourable prospects for job opportunities. 

PIOJ director-general Dr. Wayne Henry has disclosed that the ‘Goods Producing Industry’ is estimated to have expanded by 2.3 per cent, due to improved performances in three of the four industries, namely ‘Agriculture, Forestry & Fishing’; ‘Mining & Quarrying’; and Construction. Real value added for the ‘Agriculture, Forestry & Fishing’ industry was estimated to have grown by 2.4 per cent.

Agricultural sector gaining momentum 

Addressing the PIOJ’s quarterly news briefing on Wednesday (February 21), Dr. Henry declared, “this improvement reflected an increase in hectares reaped by 0.9 per cent, and higher output per hectare for five of nine domestic crop groups. The outturn was in response to higher demand, particularly from the Hotels & Restaurants industry.” 

The industry’s performance was driven by higher output in all sub-components of the industry with the exception of ‘Animal Farming’. The ‘Other Agricultural Crops’ component was estimated to have grown by 1.3 per cent, reflecting higher production in six of the nine crop groups, namely: Other tubers, up 7.6 per cent; plantains, up 7.0 per cent; legumes, up 6.4 per cent; vegetables, up 3.2 per cent; yams, up 3.2 per cent; and cereals, up 1.4 per cent. 

According to Henry, “higher output was recorded for traditional export crops, which grew by 10.6 per cent, largely driven by increased production of cocoa (up 16.9 per cent), coffee (up 30.9 per cent), and banana (up 9.6 per cent), which outweighed a 35.7 per cent decrease in sugar cane production to 18 632 tonnes.”

Mining & Quarrying 

Real value added for the Mining & Quarrying industry increased by an estimated 23.6 per cent, reflecting an expansion in alumina production, as crude bauxite production declined. Alumina production, grew by 32.9 per cent due to increased capacity utilisation at the JAMALCO refinery. 

The alumina capacity utilisation rate increased to 39.0 per cent, up 9.6 percentage points compared with the corresponding quarter of 2022. Crude bauxite production fell by 27.0 per cent. Consequently, the bauxite capacity utilisation rate decreased to 32.7 per cent, down 12.1 percentage points.

Manufacturing 

The Manufacturing industry was estimated to have contracted by 0.3 per cent, stemming from lower output in the sub- industries, ‘Food, Beverages & Tobacco and Other Manufacturing’. The decline in the ‘Food, Beverages & Tobacco’ sub-industry reflected lower production for: ‘Rum & Alcohol’, down 32.1 per cent; ‘Sugar’, down 59.3 per cent; ‘Edible Oils’, down 5.8 per cent; ‘Dairy Products’, down 10.9 per cent and ‘Poultry Meat’, down 2.2 per cent. 

Further declines were tempered by increases recorded for ‘Edible Fats’, up 20.8 per cent; ‘Molasses’, up 14.6 per cent; and ‘Carbonated Beverages’, up 21.5 per cent. 

Construction 

Real value added for the Construction industry was estimated to have expanded by 1.4 per cent. The industry’s performance was reflected in an increased supply of cement and asphalt, as well as, higher real sales from firms that operate within the construction industry. 

Further growth was constrained by a 27.8 per cent decline in housing starts by the National Housing Trust (NHT), as well as a 2.4 per cent decrease in the value of mortgages disbursed by that institution.