Ashford W. Meikle, Staff Reporter
A 24 PER cent decline in the agriculture sector contributed to the sluggish growth of the economy during the first three months of the year.
According to the Planning Institute of Jamaica (PIOJ), the country's gross domestic product, which is a measure-ment of economic performance, grew by about 0.6 during the period.
The agricultural sector's decline in the first quarter represents a 17 per cent decline for the 2004/05 fiscal year.
"This decline ... reflects the impact of drought conditions [and] bush fires during this quarter and the residual effects of Hurricane Ivan," explained Dr. Peter John Gordon, director of the Economic, Planning and Research Division (EPRD) at the PIOJ. He was speaking at a press briefing on the quarterly review of the country's economic performance at the agency's New Kingston offices yesterday.
FIRST-QUARTER DECLINE
The news that the agriculture sector recorded a decline in the first quarter was not unexpected in light of the fact that there has been a steady decline for the last four quarters. In fact, for the 2004 calendar year there was a decline of almost 11 per cent The PIOJ director reported that the economy was estimated to have grown by 0.7 per cent for the 2004/05 fiscal year.
For the first three months of the year, the services sector experienced a two per cent growth, while the goods productive sector saw a decline of two per cent compared to the corresponding period last year.
BAUXITE PRODUCTION FALLS
In analysing the post-quarter performance, Dr. Gordon noted that up to April this year, total bauxite production fell by 14 per cent because of the 42 per cent decrease in crude bauxite production. This was as a result of the wage disputes at the St. Ann Bauxite Company. As well, total bauxite exports decreased by a little over seven per cent.
However, notwithstanding the expected decline in the agricultural sector and the temporary setback in bauxite production, the PIOJ expects the economy to register growth of almost two per cent during the second quarter.
Domestic crop production -24%
Export crop production -48%
Livestock production +8%
