Despite the ravages of the coronavirus (COVID-19) pandemic, the Statistical Institute of Jamaica (STATIN) says the country enjoyed its second consecutive quarter of economic growth.

STATIN, in its review of the July to September quarter, indicated that the Jamaican economy grew by 5.8 per cent when compared to the corresponding period in 2020.

“This was attributable to growth in both the ‘Services’ and ‘Goods Producing Industries’ of 7.1 per cent and 2.4 per cent respectively. The economy continued to show signs of recovery from the negative impacts of COVID-19 in 2020,” reported STATIN on Friday (December 31).

Additionally, the relaxation of some COVID-19 measures, including the reopening of the entertainment sector in July, and the easing of international travel restrictions, contributed positively to the economic turnaround.

According to STATIN, the growth in the ‘Services Industries’ was due to improved performance in all eight industries: hotels & restaurants (114.6 per cent), transport, storage & communication (8.8 per cent), wholesale & retail trade; repairs; installation of machinery & equipment (4.4 per cent), other services (12.2 per cent), finance & insurance services (2.3 per cent), real estate, renting & business activities (0.7 per cent), electricity & water supply (0.6 per cent) and producers of Government services (0.4 per cent).

The increase in the ‘Goods Producing Industries’ was mainly due to higher output levels in agriculture, forestry & fishing (7.3 per cent), manufacturing (4.6 per cent) and construction (4.4 per cent). Mining and quarrying, however, declined by 29.7 per cent.

The decline in the mining & quarrying industry was largely due to a major fire that occurred at the Jamaica Aluminium Company (JAMALCO) plant in Hayes, Clarendon on August 22.

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Relative to the second quarter of 2021, total value added grew by 0.6 per cent.

This was due to an increase of 1.1 per cent in the ‘Services Industries’. However, the ‘Goods Producing Industries’ declined by 0.6 per cent.

For his part, Minister of Finance and the Public Service, Dr Nigel Clarke, reacting to the latest STATIN findings heralded the economic report as good news to close out 2021.

After an abysmal economic performance in 2020, which saw the country posting declines in the second, third and fourth quarters, Jamaica opened its first 2021 quarter on a negative note—slumping 6.7 per cent over a similar period last year.

The second quarter, buoyed by positive developments in the local tourism and mining and construction sectors, pushed Jamaica into a 14.2 per cent about-face.

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