Jamaica’s economy expands 4.8% in Q2 2022

October 3, 2022

Jamaica’s GDP rose 4.8% in Q2 2022 compared to Q2 2021, as the Services Industries added 7.2% more value at constant pricing relative to Q2 2021’s outturn. The Goods Producing Industries’ value added fell 2%. Revocation of the Disaster Risk Management Order, expiration of the COVID-19 pre-test requirement for travel on April 15, 2022, and reopening of the entertainment industry helped the economy. 

Hotels & Restaurants (56%) Wholesale & Retail Trade; Repairs; Installation of Machinery & Equipment (7.5%) Transport, Storage & Communication (5.7%) Other Services (9.8%) Finance & Insurance Services (1.1%) Real Estate, Renting & Business Activities (2.1%) Producers of Government Services (0.4%) Electricity & Water Supply (2%). 

Mining & Quarrying (62.5% of the drop) and Construction (5.2%) also contributed. Agriculture, Forestry & Fishing and manufacturing expanded by 6.3% and 5.6%, respectively. 

When compared to the first quarter of 2022, total value added at constant prices grew by 1.3 per cent, a continuation of the trend evident since the third quarter of 2020. 

Goods Producing Industries 

Agriculture, Forestry, and Fishing value added rose 6.3%. This was attributed to 6.8% and 3.1% increases in Other Agricultural Crops (which includes Animal Farming, Forestry, and Fishing) and Traditional Export Crops. Favorable weather and government programs to promote crop yield boosted the industry’s success. Hotel and restaurant demand for local food boosted the sector. 

Mining & Quarrying fell 62.5% owing to decreasing alumina and bauxite production. Alumina output fell 76% to 90,1 thousand tonnes from 389,1 thousand tonnes in 2021. The Jamaica Aluminium Company (JAMALCO) factory remains shuttered owing to the August 2021 fire. Alumina exports fell 64.7% as output fell. 

Manufacturing’s value-added climbed 5.6%. The Food, Beverages & Tobacco sub-industry increased production by 10.1%. Other Manufacturing fell 0.9%. 

Meat & meat products, bread items, processing & preservation of fruits & vegetables, animal feeds, and drinks grew the Food, Beverages & Tobacco sub-industry. Increased demand from hotels, restaurants, and schools boosted the subsector. Quarterly sugar and molasses production fell. 

Refined petroleum products and non-metallic mineral goods drove down Other Manufacturing. Downtime hampered output of refined petroleum products. Due to maintenance, the refinery ran fewer days in the review quarter than in 2021. Heavy fuel oil, diesel oil, and gasoline output fell as a result. Cement production reduced non-metallic mineral product output. Chemicals and paper goods grew. 


Services Industry

Electricity & Water Supply value added rose 2%. Due to a 2.7% rise in power use. Commercial usage grew from 769,701 MWh in 2021 to 790,596 MWh in 2022. 2022 water use fell 0.7% to 4,620.7 million gallons. Lower domestic consumption caused this. 

Hotels & Restaurants grew 56.0%   due to the increased performance in both hotels and restaurants, pubs, and canteens. Foreign arrivals increased by 79.2%, driving expansion in hotels and other short-stay accommodations. Compared to 2021, 616,378 foreigners visited the island in 2022. U.S., Canada, Europe, and Latin America all saw increases in arrivals. Revocation of the Disaster Risk Management Order led to increased operating hours for restaurants, pubs, and canteens. 

Wholesale & Retail Trade; Repairs; Installation of Machinery & Equipment grew 7.6%. Agriculture, manufacturing, and imports boosted this business. 

Recreational, cultural, and sports activities and other services grew 9.8%, boosting the Other Services business. The recreational, cultural, and sports activities sub-industry benefited from the entertainment sector’s reopening, the removal of the Disaster Risk Management Order, and the expiration of the COVID-19 pre-test required for travel to the island. This sub-industry grew due to tourism, entertainment, and gambling. A 77.8% increase in stopover visitors to the island boosted group tourism activity. 660,095 stopovers arrived in 2022, up from 371,270 in 2021. In 2021, when the piers were closed to prevent the spread of COVID-19, 186,859 cruise passengers arrived on the island. 



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