REVIEW OF THE ECONOMY 2013
14
SUSTAINING GROWTH, SECURING PROSPERITY
The main driver of the Jamaican economy,
Mining and Quarrying, suffered a decline in
growth from19.4 percent in 2011 to 9.1 percent in
2012. This is attributed mainly to the downturn
in global demand for aluminium in tandemwith a
decline in capacity utilisation. The latter, induced
by the devastation wreaked by Hurricane
Sandy, deteriorated the bauxite and alumina
industries in 2012, effecting a decline by 8.8
percent and 10.3 percent, respectively. Lower
capacity utilisation also negatively impacted
Construction which declined by 3.5 percent;
and Transport, Storage and Communication by
1.9 percent.
In 2012, 7.4 percent inflation was recorded,
relative to 6.0 percent in 2011. This reflects
the impact, to varying degrees, of the
implementation of new tax measures, a rise in
international grains prices, drought conditions
in the first three quarters of the year and
depreciation of the exchange rate.
Labour market conditions worsened and
unemployment increasedto13.0percent in2012,
from 12.7 percent in 2011. Construction and
Installation was the main industry that recorded
a contraction in employment in 2012 and
contributed to the increase in unemployment.
In 2012, the fiscal current account deficit
narrowed to 11.9 percent of GDP from 12.6
percent in 2011. This is reflective of a narrowing
in the deficits on the Goods and Income sub-
accounts which was partly offset by surpluses
gained on the Services and Current Transfers
sub-accounts.
GUYANA
The Guyanese economy maintained its upward
trajectory, as it exhibited a 3.3 percent growth in
2012, albeit falling short of its 5.4 percent growth
in 2011. This outturn is attributed to favourable
output in the economy’s major sectors of
services,manufacturing,mining and agriculture.
Inflation increased substantially from 3.3
Barbados economy, occasioning a flat growth
performance from a minimal 0.6 percent growth
of the previous year.
The growth rate was affected mainly by the
performance of the tourism industry which
contracted by 2.0 percent during January to
March 2013. The subdued performance was
due chiefly to reductions in tourist arrivals from
the UK and Canada of 13.0 percent and 15.0
percent, respectively. Tourist arrivals from the
UK were affected by an increase in the UK’s
Air Passenger Duty, as well as the cessation of
flights by Redjet.
Price levels decreased markedly. Annual
inflation measured 1.2 percent for 2012, a
marked decrease from 9.5 percent of 2011 as
lower prices were recorded in Housing, Fuel and
light and Household Operations and Supplies.
The average unemployment rate for the year
2012 was approximately 11.6 percent, increasing
slightly from 11.2 percent in 2011 due to a higher
number of layoffs in the accommodation and
foodservices industryaswell as theconstruction
sector.
Barbados’ external current account deficit
improvedmarkedly from8.7 percent in 2011 to 5.7
percent in 2012, notwithstanding an estimated 4
percent increase in the importation of consumer
goods.
As at May 2012, Barbados’ primary fiscal balance
stood at -0.5 percent of GDP, departing from 1.1
percent in the same period of the previous year.
Decreases in revenue frompersonal taxes andVAT
receipts together with increases in subsidies to
government entities are attributed to this decline.
JAMAICA
Jamaica’s growth decelerated from a rate of 1.5
percent in 2011 to 0.1 percent in 2012. Domestic
consumption was affected by lower remittance
inflows. This weak demand together with
depressed investor and consumer confidence
contributed to waning growth.
ECONOMIC PERFORMANCE OF CARICOM STATES
