Services industry made biggest jump of 7.2%, while goods producing industries declined
The Jamaican economy grew by 4.8 per cent during the second quarter of 2022, when compared to the second quarter of 2021.
This was attributed, by the Statistical Institute of Jamaica (STATIN), to an increase of 7.2 per cent in the services industries. However, the goods producing industries declined by 2.0 per cent. The performance of the economy was impacted by the revocation of the Disaster Risk Management Order, the expiration of the COVID-19 pre-test requirement for travel to the island on April 15, 2022 and the reopening of the entertainment sector.
The growth in the services industries was due to improved performance in all eight industries: Hotels & Restaurants (56.0%), Wholesale & Retail Trade; Repairs; Installation of Machinery & Equipment (7.6%), Transport, Storage & Communication (5.7%), Other Services (9.8%), Finance & Insurance Services (1.1%), Real Estate, Renting & Business Activities (2.1%), Producers of Government Services (0.4%) and Electricity & Water Supply (2.0%).
Improved performance in Hotels & Restaurants industry
The performance of the Hotels & Restaurants industry was due to improved performance in all groups within the industry: hotels & other short-stay accommodation and restaurants, bars & canteens. The growth in hotels & other short-stay accommodation was largely due to a 79.2 per cent increase in foreign national arrivals to the island during the period.
The decline in the goods producing industries was mainly due to lower output levels in Mining & Quarrying (62.5%) and Construction (5.2%). There was no alumina production from the Jamaica Aluminum Company (JAMALCO) plant, which remained closed due to the fire that occurred in August 2021.
However, there were increases in Agriculture, Forestry & Fishing (6.3%) and Manufacturing (5.6%). The Agriculture, Forestry & Fishing industry was positively impacted by favourable weather conditions. The economy grew by 1.3 per cent in the second quarter of 2022 when compared to the first quarter of 2021.
This was due to an increase of 2.4 per cent in the services industries. However, the goods producing industries declined by 1.9 per cent.