Data Shows Decelerating Growth in Key Economic Sectors

The Jamaican economy has had one of its most turbulent years as growth in key sectors has decelerated heading into 2025.

The latest data provided by the Planning Institute of Jamaica, PIOJ, suggest even without the impact of Hurricane Beryl, growth prospects have narrowed as the year continued.

Chevon Campbell tells us more.

The country closed out 2023 on a relatively high note, securing average economic growth of 2.6%.

This continued up to that point with an unbroken chain of economic expansion since recovery from the COVID-19 pandemic.

At the time, PIOJ Director General, Dr. Wayne Henry, was optimistic that this would be the case for 2024.

However, by the close of the first quarter in 2024, growth had already shown signs of slowing.

But key sectors were still performed admirably at the start.

Agriculture, which came in at 2.6 percent in October to December, climbed to 7.5 percent by the quarter ending in March.

However, it soon began to decline, growth falling to 3.4 percent in April to June.

The latest data now shows a contraction of 13.5 percent.

Mining and quarrying has similarly trended down for 2024.

It came from a high of 103 percent in September of 2023, with successive declines each quarter.

A year later, the sector has shrunk by 15 percent.

Tourism, as represented by hotels and restaurants, has been the most resilient sector of the Jamaican economy.

However, even this juggernaut has not been immune to economic pressure.

In September 2023, the sector led the services industries with growth of 8.4 percent.

The preceding quarter growth slightly declined to just 8.3 percent.

By the first quarter of 2024, this fell to six-point-9 percent.

However, after a strongly worded level three travel advisory, tourism took a beating in the April to June quarter.

It registered growth of only one percent.

And, much like other sectors a year following its high point, tourism has also contracted by 2.1 percent.

Dr. Henry’s prior optimism shown at the start of the year has now turned negative.

There’s however hope that the economy will come back on track in the new year as the negative impacts felt through 2024 fade.