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Jamaica's import bill continues to decline.

Featured Jamaica's import bill continues to decline.
As the country continues to experience a structural adjustment of the economy in line with the IMF agreement, Jamaica has been importing less goods from abroad. The island imported goods valuing some US$2.4 billion between January and May this year which represents a reducuction of some 8.5 percent. This is the word from the Statistical Institute of Jamaica (STATIN).

While the country imported less, unfortunately, the export sector failed to take advantage of the benefits of devaluation with exports falling by 14 percent. Fewer goods were sold overseas during the period, with total exports valuing US$ 616 million.

The government says tax revenues continue to lag behind forecasts as corporate income tax and GCT  (General Consumption Tax) fell behind expectations. 
     
Total tax intake between April and July was J$611 million lower than target.  
     
Corporate income tax targets which were off by 1 point 9 billion dollars as well as a $1.6 billion shortfall in GCT both served to outstrip other tax sources which were mainly higher than forecast. 

 Despite less revenues than anticipated, the government still managed to realise a primary surplus which was 3 point 6 billion dollars above target as the public sector wage bill, government programmes and capital expenditure were behind schedule.  

The better than projected primary surplus means the government has more money than budgeted to help pay down the debt, which is a key plank of the IMF (International Monetary Fund) programme.

An assessment by the Bank of  Jamaica shows there was marginal growth in the finance and insurance services industry during the April to June quarter.

According to the Bank's quarterly monetary policy report, the expansion was largely associated with higher net interest income.

Increased foreign exchange gains also helped to spur growth.

 

Last modified onSaturday, 30 August 2014 15:17

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