Jamaica’s economy has demonstrated robust growth in the second quarter of 2024, surpassing initial estimates and setting the stage for an even stronger performance in the third quarter. The Statistical Institute of Jamaica reported a 1.6% year-on-year expansion for the April-June period, an upward revision from the earlier 1.4% estimate released by the Planning Institute of Jamaica in August. This marks the second consecutive quarter of economic growth, signaling a steady recovery trajectory. The Bank of Jamaica (BOJ) projects a further acceleration, with third-quarter growth anticipated to reach between 3% and 4%. The central bank attributes this momentum to a tight labor market and rising wage growth, which are broadening economic activity. The agricultural sector emerged as a standout performer, surging by 9.2% due to favorable weather conditions that boosted harvests of yams, vegetables, and fruits. This contributed to a 3.6% overall increase in the goods-producing sector. Tourism, a critical driver of the economy, also saw a 4.1% rise in accommodation and food services, fueled by higher foreign arrivals. However, the mining sector faced challenges, contracting by 4.8% due to operational issues at alumina refineries. Despite this setback, the BOJ remains optimistic, forecasting sustained economic expansion over the next two years, positioning Jamaica on its most stable recovery path in years.
Jamaica’s Q2 economic growth faster than initially thought, outlook strengthens
