January 3, 2024
The Statistical Institute of Jamaica (STATIN) reported a 3.5% decline in Jamaica’s total value added in the third quarter of 2024 compared to the same quarter of 2023. The performance of the economy was primarily attributed to falls in the Services and Goods Producing Industries of 2.2% and 7.2%, respectively.
Services Industries
The decline in the Services Industries was driven by contractions in all industries except Finance & Insurance Services, which grew by 0.8 per cent, and Transport, Storage & Communication, which increased by 2.5 per cent. Notable declines were recorded in Electricity & Water Supply (5.8%), Wholesale & Retail Trade; Repairs; Installation of Machinery & Equipment (3.0%), Hotels & Restaurants (6.2%), Real Estate, Renting & Business Activities (3.2%), Producers of Government Services (0.5%), and Other Services (6.5%). Notably, damage to Jamaica Public Service Company LTD (JPS) infrastructure caused delays in power restoration across several parishes, resulting in reduced electricity and water consumption. This adversely affected the performance of both the Electricity & Water Supply and Other Services industries.
Goods Producing Industries
All the Goods Producing Industries decreased: Agriculture, Forestry, & Fishing (12.5%), Mining & Quarrying (17.4%), Manufacturing (4.0%), and Construction (3.3%). This was particularly due to the passage of Hurricane Beryl in July 2024, in which heavy rains and winds damaged mature crops, hindered harvesting, delayed planting, and caused significant damage to one of the major alumina producing plants.
In the third quarter of 2024, the economy contracted by 1.8% compared to the second quarter of 2024. This downturn was driven by declines in both the Goods Producing Industries (4.5%) and the Services Industries (0.8%).
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