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GOING FOR GROWTH FEATURE
| THURSDAY, MAY 7, 2015
E
CONOMIC GROWTH is important to
support the improvement of living
standards and national well-being of
the Jamaican people. However, over the
period since its independence, Jamaica has
produced relatively low rates of economic
growth, averaging 1.6 per cent in annual real
gross domestic product growth over the
period 1962-2014, compared with an average
annual growth of 3.1 per cent for the global
economy over the same period.
The global economic downturn of 2008-
2009 posed additional challenges and
Jamaica has had positive growth in only
three of the last seven years, including
modest growth in 2013 and 2014.
The main constraints to economic growth
in Jamaica include: macroeconomic
vulnerabilities, including high levels of public
debt; uncompetitive business environment;
long-term declines in productivity; and high
levels of crime and violence.
In response, the Government of Jamaica
(GOJ) has developed a comprehensive
strategy to address the underlying factors and
generate higher levels of economic growth in
the medium term. The GOJ’s growth agenda
has the components outlined in the table.
The implementation of the growth agenda
has recorded significant achievements to
date with improvements in macroeconomic
performance and the business environment,
including downward trends in the rates of
inflation and unemployment, and reduction
in the fiscal deficit and current account
deficit.
Jamaica has increased its ranking under
the World Economic Forum’s Global
Competitiveness Report for 2014-15,
moving to 86 out of 144 countries, up
from 94 of 148 countries in the 2013-14
report, while the Doing Business Report
2015 has indicated that Jamaica moved up
27 places in the ranking over the previous
year.
Consistent with these improved
rankings is the 2014 Forbes Best
Countries for Business Report which
named Jamaica the most improved
business environment in the English-
speaking Caribbean.
The Government has put in place a
strong institutional framework to ensure
the successful implementation of the
growth agenda, including periodic reporting
on progress. The success of the
implementation of the growth agenda will
enhance the contribution of the economy
to national development and the well-being
of the Jamaican people in the short and
medium term.
FILE
James Stewart (left), director, Business Desk Economic Planning, Research and Policy Logistics Division at the Planning
Institute of Jamaica (PIOJ); Collin Bullock, director general; and Richard Lumsden, deputy director general, Economic,
Planning and Policy Logistics Division at the PIOJ, at the quarterly press briefing at the PIOJ, New Kingston, recently.
PIOJ upbeat on growth prospects
The
implementation of
the growth agenda
has recorded
significant
achievements to
date with
improvements in
macroeconomic
performance and
the business
environment
COMPONENT ROLE
1. Fiscal consolidation
Provides macroeconomic stability and reduces the public
debt
2. Business environment Address constraints in the business environment,
competitiveness reforms including conditions for micro, small and medium
enterprise development
3. Strategic investment
Provide major capital investments and employment
projects
generation; improve the business environment
Agro-parks; tourism; ICT and business process
outsourcing; logistics; infrastructure; energy
diversification
4. Human capital
Build labour productivity; provide social protection for
development and
vulnerable groups
protection
5. Human and
Address crime and violence constraints; provide a safer
community security
environment for economic activities
6. Environmental
Enhances environmental resilience; reduces impact of
resilience
disasters and climate change on the economy and
population