October 2, 2023
The Statistical Institute of Jamaica (STATIN) reported a 2.3% increase in Jamaica’s total value added at constant prices in the second quarter of 2023 compared to the same quarter of 2022. Services and Goods Producing Industries grew 2.2% and 2.6%, respectively. The performance reflected the economy’s sustained recovery from the adverse effects of the COVID-19 pandemic. Total value added, seasonally adjusted, was $196.6 billion compared to $190.7 billion in March 2020, the quarter prior to the outbreak of the pandemic.
Services Industries
Transport, Storage & Communication (5.6%), Hotels & Restaurants (7.8%), Electricity & Water Supply (6.2%), Other Services (2.2%), Finance & Insurance Services (2.1%) and Real Estate, Renting & Business Activities (1.8%), industries all had higher activity levels. However, Wholesale & Retail Trade; Repairs; Installation of Machinery & Equipment and Producers of Government Services both declined by 0.1%.
The value added for the Electricity & Water Supply industry grew by 6.2%. This was mainly due to a 7.9% increase in electricity consumption. Electricity consumption was 853,041 MWh in 2023, coming from 790,596 MWh in 2022. This was mainly due to higher consumption by commercial customers. Water consumption, however, fell by 0.3% to 4,608.3 million gallons in 2023, compared to 4,620.7 million gallons in 2022. This was primarily due to a decline in consumption by residential customers as water restrictions continued in some areas of the island.
The Hotels & Restaurants industry expanded by 7.8%. This resulted from improved performance in the groups hotels & other short-stay accommodation and restaurants, bars and canteens. Hotels & other short-stay accommodation benefitted from an estimated 12.8% increase in foreign national arrivals when April and May 2023 arrivals were compared to that of April and May 2022. There were increased arrivals from the United States of America, Canada and Latin America.
The Transport, Storage & Communication industry increased by 5.6% resulting from growth in the post & telecommunications and transport sub-industries. The main contributor to the increase in post & telecommunications was the group telephone services. The growth in telephone services was influenced by increased promotions during the review period. The transport sub-industry also benefitted from increased demand for services. The number of air and cruise passenger arrivals to the island rose by 13.4% and 16.2% respectively. A total of 1,752,482 passengers travelled through the country’s airports in 2023, compared to 1,545,396 in 2022. Cruise passenger arrivals were 217,169 in 2023, moving from 186,859 in 2022.
Goods Producing Industries
Higher output levels were recorded for Mining & Quarrying (164.2%) and Manufacturing (3.1%). Agriculture, Forestry & Fishing and Construction however declined by 8.1% and 0.7% respectively.
The value added for the Agriculture, Forestry & Fishing industry contracted by 8.1% for the second quarter of 2023 when compared to the similar quarter of 2022. This was due to lower production levels in the sub-industries Other Agricultural Crops (which includes Animal Farming, Forestry & Fishing) and Traditional Export Crops of 8.9% and 2.0% respectively. The industry’s performance was impacted by continued drought conditions that significantly reduced yields and delayed the land preparation and planting of domestic crops.
The Manufacturing industry grew by 3.1% as a result of increased production in the Food, Beverages & Tobacco and the Other Manufacturing sub-industries of 4.6% and 0.7% respectively. The growth in Food, Beverages & Tobacco was mainly due to higher output levels in the manufacturing of vegetable & animal oils and fats, dairy products, bakery products and beverages.
Value added for the Mining & Quarrying industry expanded by 164.2%, largely due to higher output of alumina. Alumina production rose by 271.8% to 334,878 tonnes in 2023, compared to 90,078 tonnes in 2022. This was primarily attributed to increased production at the JAMALCO plant which was closed in the similar period of 2022. The higher alumina output was reflected in the volume of alumina exported which increased by 161.0% to 385,690 tonnes for the period. However, the production of crude bauxite fell by 6.8% to 627,986 tonnes in 2023. This was reflected in a 5.9% decline in crude bauxite exports to 641,555 tonnes in 2023.
The Construction industry declined by 0.7%, mainly due to reduced activities in the civil engineering group, largely influenced by lower expenditure on the South Coast Highway Improvement Project.
Notably, total value added at constant prices rose by 0.2% when compared to the first quarter of 2023. This was the result of a 0.8% increase in the Goods Producing Industries as the Services Industries declined by 0.1%.
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