US Market
Bank of Jamaica Governor Richard Byles views the current dip in economic output as transitory, amid signs of two consecutive quarters of decline.
The Jamaican economy contracted by 3.5 per cent in the third quarter of 2024 and Planning Institute of Jamaica’s readings indicate that there was a second contraction in the December quarter. A double dip would put Jamaica in a technical recession.
“We have no quarrel with the current internationally accepted criteria, which is fundamentally rooted in GDP decline in consecutive quarters. That is an internationally accepted definition. All we are saying is, recall we are coming from very strong weather-related incidents that would have had a negative effect,” said Byles at a press conference on Monday.
Last week, PIOJ reported that the economy contracted by 1.8 per cent in the October-December period, by its estimate. The final outturn will be determined by Statin, which will release its data on March 31.
The PIOJ attributed the decline to the external shock of Hurricane Beryl and other weather-related events, rather than any inherent weakness in the economy.