The Planning Institute of Jamaica (PIOJ) today reported that the economy contracted by 18 per cent for the April-June quarter when compared with the corresponding quarter of last year.
The PIOJ said that this was largely due to the fact that the economy continues to be negatively impacted by the effects of the COVID-19 pandemic, along with the measures implemented to mitigate its spread.
The PIOJ further noted that for the first six months real gross domestic product (GDP) also declined by 10.2 percent as all major sectors in the services and goods producing industries also saw significant declines.
Director General of the entity, Dr Wayne Henry, said that based on the current spikes in the rates of infection from the highly contagious virus and the implemented containment measures, it is unlikely that the economy will record growth for the remainder of this fiscal year.
“The current projection is that the economy will contract within the range of eight to 10 per cent for fiscal year 2020/21. This compares with the previous projection for a contraction within the range of four to six percent. This out-turn, if it materialises, would result in the most significant decline in GDP on record, that is, since FY1996/97— when Jamaica began producing the fiscal year GDP data series,” he said.
The director general also said that an anticipation for GDP recovery was not expected until the next two years.