RECESSION………..JAMAICA???

Economy on the verge of recession, says PIOJ

The Planning Institute of Jamaica, PIOJ, has indicated that the economy is on the verge of a recession and the situation could worsen.

Director General of the PIOJ, Dr Gladstone Hutchinson, says, while the original forecast was for the economy to grow in a range of 0.5 to 1.5 percent in the April to June quarter, estimates are that growth was a meagre 0.1%

That estimate came after the Statistical Institute of Jamaica, Statin, said, the economy contracted in the first quarter of the year, despite PIOJ estimates that growth took place.

Dr Hutchinson however indicated that things could get worse for the economy

“GDP performance for the six months of January to June was estimated to be flat. The goods producing and servicing industry both declined by 0.1. in terms of an outlook we expect GDP growth for September 2012 to be within the range of -0.5 to 0.5%”

Dr Hutchinson says, the lack of growth is due to a downturn in capital expenditure and declines in consumer and business confidence.

He reiterated, that the slowdown came at a time when unemployment is at a ten year high – 14 point 3 percent.

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