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Signs of economic improvement says Latibeaudiere
Wednesday, 12 August 2009
The Bank of Jamaica (BOJ) in its quarterly economic update Wednesday said there were signs that there will be some improvement in the Jamaican economy in the medium term.
At its quarterly press briefing for the April to June period, BOJ Governor Derick Latibeaudiere said inflation was trending down and the exchange rate has remained relatively stable over the period.
He said the foreign exchange market remained relatively stable in the period with a marginal depreciation of 0.29% in the value of the Jamaican dollar to the US currency.
He noted that this stability was enhanced by the contraction in the demand for foreign exchange.
Mr. Latibeaudiere added that during the April to June perio, inflation was 2.7% percent which was less than the 4.0% to 5.5% that was projected by the bank in the last quarter.
"The lower out turn relative to forecast was due largely to the stability in the foreign exchange market and the lower than expected impact of tax measures on retail prices. The out turn for the quarter brought the 12 month point to point inflation to 8.9%.
"Our underlying inflation also continued to decline reflecting the bank's tight monetary policy stance," said Mr. Latibeaudiere.
Industries contracting
The Central Bank's Governor is projecting that in the next quarter inflation will range from 25 to 3.5%.
The bank also described an estimated contraction in industries in the range of 3.5% to 4.5% during the April to June period.
This was caused by the decline in mining and quarrying due to the closure of two of three bauxite plants.
"The estimated contraction of the real sector occurred against the background of continued weak external and domestic demand as well a as uncertainty regarding future economic prospects indicated by the declining business and consumer confidence in the period under revue. The continued decline in remittances as well as the growth in local unemployment contributed to the weak domestic demand.
The downturn in the global economy will continue to have an adverse impact on the Jamaica n economy in the quarter, Mr. Latibeaudiere added.
However, projections are that other sectors such as agriculture, hotel and restaurant industry will see improvement in the September quarter.
Mr. Latibeaudiere added that further improvement in the Jamaica economy is directly hinged on the pace at which the global economy bounces back after the recession.
www.radiojamaica.com
Wednesday, 12 August 2009
The Bank of Jamaica (BOJ) in its quarterly economic update Wednesday said there were signs that there will be some improvement in the Jamaican economy in the medium term.
At its quarterly press briefing for the April to June period, BOJ Governor Derick Latibeaudiere said inflation was trending down and the exchange rate has remained relatively stable over the period.
He said the foreign exchange market remained relatively stable in the period with a marginal depreciation of 0.29% in the value of the Jamaican dollar to the US currency.
He noted that this stability was enhanced by the contraction in the demand for foreign exchange.
Mr. Latibeaudiere added that during the April to June perio, inflation was 2.7% percent which was less than the 4.0% to 5.5% that was projected by the bank in the last quarter.
"The lower out turn relative to forecast was due largely to the stability in the foreign exchange market and the lower than expected impact of tax measures on retail prices. The out turn for the quarter brought the 12 month point to point inflation to 8.9%.
"Our underlying inflation also continued to decline reflecting the bank's tight monetary policy stance," said Mr. Latibeaudiere.
Industries contracting
The Central Bank's Governor is projecting that in the next quarter inflation will range from 25 to 3.5%.
The bank also described an estimated contraction in industries in the range of 3.5% to 4.5% during the April to June period.
This was caused by the decline in mining and quarrying due to the closure of two of three bauxite plants.
"The estimated contraction of the real sector occurred against the background of continued weak external and domestic demand as well a as uncertainty regarding future economic prospects indicated by the declining business and consumer confidence in the period under revue. The continued decline in remittances as well as the growth in local unemployment contributed to the weak domestic demand.
The downturn in the global economy will continue to have an adverse impact on the Jamaica n economy in the quarter, Mr. Latibeaudiere added.
However, projections are that other sectors such as agriculture, hotel and restaurant industry will see improvement in the September quarter.
Mr. Latibeaudiere added that further improvement in the Jamaica economy is directly hinged on the pace at which the global economy bounces back after the recession.
www.radiojamaica.com