Bank of Jamaica (BOJ) Governor, Richard Byles, has stated that Jamaica is on the path to economic recovery following the devastation of the economy brought about by the coronavirus pandemic.
Byles pointed to the foreign exchange market inflows, adequate reserves, a sustainable balance of payments position, and the containment of inflation within the Bank’s 4-6 percent target range, as degree of vibrancy in the economy.
The governor said that based on the latest development, “we believe the contraction in the economy is past its worst, and the outlook is for continued, albeit more gradual improvements in economic activity”.
He noted that the 10.7 percent contraction in domestic growth recorded in the September 2020 quarter represented an improvement on the 18.4 per cent decline for April to June 2020, and the Bank continues to project that for the full 2020-21 fiscal year, real gross domestic product (GDP) will contract in the range of 10-12 per cent.
The BOJ Governor said, however, that a partial rebound of at least four per cent in economic activity is projected to commence in fiscal year 2021-22 “and could possibly be as high as eight per cent if there’s strong recovery in tourism”.
“This projected growth in the fiscal year 2021-22 represents a first step in getting the economy back to levels of economic activity [predating COVID-19],” Mr. Byles added.
Readers Bureau, Contributor
Edited by Jesus Chan
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