Economist disappointed by 0.8% growth in Jamaican economy

 

Development economist Dr. Chris Stokes has expressed disappointment in the 0.8% growth in the Jamaican economy for the first quarter of this year. 

 

The less than 1% growth follows two consecutive quarters of negative growth. 

 

The Planning Institute of Jamaica reported on the economy's performance for January to March during a media briefing on Wednesday. 

 

Dr. Stokes said he had expected the growth rate to be higher.

 

"One of the areas that we grew in - construction - was NWA (National Works Agency) and Port Authority spending tons of money. And I also noticed, for example, that under services, rental of office space is down. And as an economist those are canary in the coal mine kinds of things that, you know, one is being driven by government spending sort of a cadency and approach and another is that well, maybe business growth is not what it needs to be. So I am glad to see that there is not that minus before it, but frankly, it's a little disappointing," said Dr. Stokes, who was speaking Wednesday on Radio Jamaica's Beyond the Headlines. 

 

Economist Mikol Mortley believes Jamaica should seek to engage in direct trade from South America and China as a means of increasing economic growth.

 

"That is a strong area for potential growth. The only other point I'd make is that the distribution sector represents 18% of our economy. That sector was largely suppressed last year, and the fact that it is the largest sector is a problem. So if we allow ourselves to get an additional mix of the transport, professional services, such as the real estate - if we can get into more productive activity in those service areas, then that's how I think we can begin to see some real growth," he reasoned. 

 

Mr. Mortley was also a guest on Beyond the Headlines.