PNP concerned about possible looming economic slowdown

Opposition Spokesperson on Finance, Mark Golding, is warning that Jamaicans need to brace for a possible contraction of the economy based on recently released growth data and the emerging adverse global effects of the novel Coronavirus.

Golding notes that the Planning Institute of Jamaica reported that, in the final quarter of 2019, the economy to grow at a paltry 0.1%, and the projection for the 2019/20 fiscal year has been further reduced to 0.6%. 

He contends that with growth having ground to a virtual halt in the second half of 2019 and the impact of the Coronavirus now looming, the Jamaican economy could well be headed into a period of economic contraction. 

“Key sectors of the economy are already in negative territory, with the construction sector shrinking by 2% in the fourth quarter of 2019, and bauxite/alumina in a deep tailspin with the closure of Jisco/Alpart,” said Golding is a statement today.

“Bauxite/alumina faces waning demand from the dislocation in China, tourism is vulnerable to vacationers’ reluctance to risk international travel, and manufacturing is exposed to serious disruption in the international supply chain and much higher prices for alternative sources. We are already seeing a sharp reduction in logistics activity at the Port of Kingston, with port workers being told to take a pay cut or face layoffs. The situation is ominous,” he added.

Golding argued that it cannot be business as usual.

He says the government needs to indicate what measures will be pursued to mitigate the adverse impact of a slowdown in the economy.

“ The Opposition stands ready to join in a national response to looming crisis, but the government must lead and not bury its head in the sand as events unfold."

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