By Al Edwards, Business Co-ordinatorTHE JAMAICAN economy grew by an estimated 2.5 per cent in the October - December 2003 quarter, largely as a result of the continued stability in the foreign exchange market, a deceleration of inflation and a narrowing of the fiscal deficit.
So declared Director-General of the Planning Institute of Jamaica (PIOJ) Dr. Wesley Hughes at a quarterly press briefing on the country's economic performance held yesterday at the PIOJ's headquarters in New Kingston.
Real Gross Domestic Product (GDP) grew by an estimated 2.5 per cent relative to the corresponding period of 2002. Goods production increased by 3.6 per cent and services went up by 1.9 per cent.
Within the goods-producing sectors, the main growth areas were agriculture, mining & quarrying and manufacturing, which grew by 7.4 per cent, 4.9 per cent and 3.8 per cent respectively.
SUBCATEGORIES RECORD GROWTH
In addition all subcategories of services recorded growth. The main contributors were Miscellaneous Services (up 6.0 per cent), Finance & Insurance Services (up 3.3 per cent) and Electricity and Water (up 2.9 per cent).
For the calendar year, January to December 2003, real GDP growth was estimated at 2.3 per cent. The services sector grew 2.4 per cent and goods production increased by 2.1 per cent.
The main sources of growth were agriculture, mining and quarrying, transport, storage and communications, miscellaneous services, finance and insurance services, and electricity and water.
Dr. Hughes said that the PIOJ projections for the period under review shows inflation at 3.4 per cent.
"There was a fiscal deficit for the review quarter of $14.5 billion; $5.4 billion more than the budgeted balance. This was due to $4.7 billion more than budgeted expenditure and $0.7 billion less than programmed revenue," said the PIOJ boss.
"The monthly average exchange rate depreciated by 1.7 per cent in nominal terms which translates into a real appreciation of 2.3 per cent. The monthly average exchange rate for December 2003 was $60.61:US$1.00 compared with $59.57:US$1.00 in September 2003."
Looking to the next quarter (January-March 2004) the Director-General said GDP is expected to grow by 2.6 per cent. The goods producing sector is expected to grow by 3.4 per cent and services by 2.1 per cent.
