Dr. Wesley Hughes, Director General of the Planning Institute of Jamaica (PIOJ), addresses members of the media at the PIOJ's quarterly press briefing to report on the performance of the Jamaican economy from January to March this year at the PIOJ's offices in New Kingston yesterday. The country's Gross Domestic Product (GDP) grew two per cent, with all goods-producing sectors recording growth - except for the manufacturing sector which declined by 0.2 per cent over the period. The agriculture sector recorded the highest growth at four per cent. - JIS photo

The Jamaican economy is expected to record second-quarter growth of just over two per cent, maintaining essentially the same momentum as in the first three months of the year, the Planning Institute of Jamaica (PIOJ) has projected.

The Statistical Institute (Statin) is the final arbiter on economic output in Jamaica, but both the central bank and the PIOJ also track the economy and periodically report on performance - which is what the latter agency did this week.

"The PIOJ's assessment of the overall economy for the period April to June 2007 continues to remain positive," the PIOJ's director general, Dr. Wesley Hughes, told reporters Tuesday.

"GDP (gross domestic product) is projected to increase by 2.1 per cent. Growth is expected in the goods-producing and and the services sectors of 3.7 per cent and 1.2 per cent respectively."

However, Hughes stressed that this GDP expansion, which government critics say remains far too modest, is predicated on continued growth in agriculture and "an upsurge in the construction sector".

Construction has returned to relatively robust times since last year's third quarter after a cement supply crisis early in 2006 had slowed down the sector. It grew by seven per cent in this year's first quarter when the economy as a whole expanded by two per cent.

Agriculture in the first quarter expanded by a healthy four per cent, much faster than the 2.8 per cent for the goods producing sector as a whole. Agriculture benefited from favourable weather conditions as well as improved productivity, Hughes said.

Services in the first quarter grew by one-and-a-half per cent despite an overall half a percentage point dip in visitor arrivals for the period and a two per cent decline in stopovers - those tourists who are likely to be guests in hotels and similar accommodations. Cruise ship visitors increased by 1.3 per cent.

Tourists, between January and April, spent US$469.6 million on their Jamaican holidays, representing a 1.5 decline in the industry's earnings compared to the same period last year.

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