Manufacturer says Jamaican economy in worst position ever, blames poor policies

 

Chief Executive Officer of Boss Furniture Omar Azan says the Jamaican economy is in the worst position it has ever been and has blamed poor economic policies for the country's stagnant growth. 

 

Mr. Azan's negative view of the economy comes against the background of discussions on the failure of commercial banks to reduce their lending rates to their customers, despite the Bank of Jamaica reducing its policy rate. 

 

Following a further reduction in the policy rate last week from 6% to 5.75%, BOJ Governor Richard Byles and Finance Minister Fayval Williams urged commercial banks to follow suit. 

 

But speaking Monday on the Morning Agenda on Power 106, Mr. Azan said the BOJ and policymakers need to shoulder some of the blame. He believes the BOJ took too long to reduce its rate while trying to control inflation, adding that policymakers need to intervene to change the culture of banking in Jamaica.

 

"I'm not saying I'm not blaming the commercial banks because they have a big part to play in lowering their rates. But what I'll say to you, just like any other businesses operating out there, when you have a devalued currency and the dollar moves to $165 or $162 to 1[USD] and you buy your goods and services or your raw materials and you bring it in, it takes a while for the pass-through effect to take place. So I'm not sure how the banking sector operates and if there's a timing thing that needs to happen. But yes, the Bank of Jamaica needs to pressure them. I think more needs to be done to get our rates and policies in place to allow banks to lend money, to allow businesses to be competitive on the global sphere," he asserted.

 

Turning to the state of the economy, Mr. Azan said businesses and consumers are struggling due to high interest rates. He said banks will soon be in a similar position.

 

"Everything is going to start going haywire, and I'm going to tell you something, the government better call election quickly because the balloon is about to blow. The economy is in the worst position that I have ever seen it in my 30-odd years of business. The buying power is the weakest. Remittances are down. Tourism is struggling. Everything is struggling. And what are we doing? We're doing things to stifle the economy with our monetary policies coming from the Bank of Jamaica and the Ministry of Finance.

 

"People out there that are living and working in Jamaica may all seem fine and dandy when the politicians step out on stage and speak high and mighty of how great the economy is doing. But look at how many hungry people are out there that are struggling, how many businesses are finding it hard. Right? So we need to start waking up, the government, the opposition," he warned.

 

In its latest report on Jamaica's economy last week, the Planning Institute of Jamaica said the country grew by 0.8 per cent in the March 2025 quarter, marking its exit from technical recession. 

 

The PIOJ said the turnaround was driven by rising consumer confidence, increased employment and stronger external demand.