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JAMAICA | PNP points to 2 year drop in FDI as proof of under-performing economy

Featured Peoples National Party spokesman on Finance, Mark Golding Peoples National Party spokesman on Finance, Mark Golding
KINGSTON, Jamaica July 9, 2018 - People's National Party Spokesman on Finance Mark Golding is concerned that in spite of the hype by the government, the  Jamaican economy has been under-performing.

In a statement, the PNP said it has taken note of a recent report from the Economic Commission for Latin American and the Caribbean (ECLAC) which indicates that foreign direct investment (FDI) into Jamaica declined for two successive years, in 2016 and 2017, with the decrease being 17.8% last year.

The party further notes that in contrast, FDI in the Caribbean region as a whole grew by 20% in 2017.

It argued that this highlights that Jamaica is trending in the wrong direction where FDI is concerned. 
"The FDI report is consistent with another recent report from STATIN which shows that growth in the Jamaican economy for the first quarter of 2018 (1.4%) was a decline of 0.4% on the previous quarter, and continues to track disappointingly below the average of 2.2% projected by ECLAC for the Caribbean region for 2018,".

Continuing,"Significantly, a 25.9% increase in Mining and Quarrying could only contribute to an overall 1.4% growth in GDP in the first quarter of 2018. Agriculture (0.6%) and manufacturing (0.8%) continue to disappoint, despite the return of favourable weather conditions, while manufacturing (1.1%) remains sluggish,". 
Shadow Minister for Finance & Planning Mark Golding stated, “These reports provide independent proof that this Government’s strategy is not working, has not worked and will not work.

Jamaica’s growth model must be built on the upliftment of the people, strengthening social cohesion and addressing the root causes of violence. In other words, a sustainable socio-economic model that works for all.”

In the meantime, The Bank of  Jamaica (BOJ) is reporting that the Net International Reserves (NIR) declined last month. At the end of  June, the NIR was valued at US$3.1 billion which was US$40 million lower than the previous month.

The report comes a few weeks after the U.S dollar traded at its highest value against the US currency in more than ten months. The news also follows comments that the BOJ made big payouts in June relating to Government bonds which became due.
The NIR was previously growing steadily. This was an indication that Jamaica was able to cushion any possible economic fallout on the local or international scene.
While NIR levels are still high there are concerns that further payouts could drastically impact the reserves.
  • Countries: Jamaica

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