Jamaica’s economy grows 1.4% in second quarter of 2025

The Planning Institute of Jamaica (PIOJ) is reporting that the economy grew by an estimated 1.4 per cent during the April to June 2025 quarter, compared with the same period in 2024.

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PIOJ Director General, Dr. Wayne Henry, said during the Institute’s hybrid quarterly briefing on Tuesday (August 19) that the out-turn reflected continued expansion across most industries.

The Goods Producing Industry grew by 3.8 per cent, driven by gains in three of four industries, while the Services Industry increased by 0.5 per cent.

“Agriculture, Forestry and Fishing and the Accommodation and Food Service industries – two industries that were hardest hit by the weather-related disruptions of 2024 – were key drivers of this positive performance. Both industries have entered into a new growth phase with current output levels surpassing their pre-hurricane Beryl output levels,” Dr. Henry said.

He added that the performance was also influenced by growth in Jamaica’s major trading partners, which boosted external demand, as well as increased domestic demand spurred by an expanded labour force of 24,200 people and higher levels of consumer and business confidence.

The Agriculture, Forestry and Fishing industry grew by 9.8 per cent, benefiting from more favourable weather conditions that contributed to increased output per hectare and an 11 per cent expansion in the area of domestic crops reaped.

Dr. Henry said the sector has “fully recovered from the shock of Hurricane Beryl and is now in a new growth phase,” noting that “the performance of the industry stemmed from a 14.1 per cent growth in the output of other agricultural crops. Increased production was recorded in all nine crop groups, led by cereals, up 27.8 per cent; potatoes up 22.9 per cent; vegetables up 18.9 per cent; condiments up 18.5 per cent; yams up 11.1 per cent, and legumes up 7.4 per cent.”

The industry’s performance was further supported by a 2.7 per cent increase in traditional export crops, a 3.6 per cent expansion in post-harvest activities, and a 3.1 per cent increase in animal farming, which outweighed a 25.5 per cent decline in egg production.

The Mining and Quarrying industry contracted by 3.5 per cent, with alumina production falling by 5.5 per cent and crude bauxite down 1.5 per cent due to reduced demand from a major overseas purchaser.

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Meanwhile, the Manufacturing industry grew by an estimated 1.4 per cent, while Construction recorded growth of 1.6 per cent, supported by increases in both Building Construction and Other Construction.

“Preliminary data on sales of Construction inputs indicate a 0.8 per cent increase in real terms, while cement supply to the market expanded by 8.5 per cent,” Dr. Henry said.

He noted that the sector also benefited from a 745.9 per cent increase in housing starts by the National Housing Trust (NHT), driven by 2,077 new starts at the Longville Park housing scheme and a higher work-in-progress from the strong increase in housing starts recorded in the previous quarter.