THE EDITOR, Madam:
Recently, Opposition Spokesman on Citizen Security and Productivity, Peter Bunting stated that the Jamaican economy is headed for a technical recession and he is on point. The Jamaican economy declined by some 3.5 per cent in the September quarter of 2024 and has now declined for another fiscal quarter ending December 2024.
What specific measures is the Government putting in place to mitigate further economic contraction and to increase overall productivity? Where are the appropriate fiscal and economic policies to structurally drive and push economic growth and expansion? Where are the policies to facilitate widespread inflows of foreign direct investment to allow for good-paying jobs?
Bunting said: “Since the initial COVID recovery, the economy slowed for the following eight or nine quarters, stalled in the quarter ending June 2024, and declined by 3.5 per cent in the September quarter”. He added that the hotel and restaurant sector declined 6.2 per cent as a result of a falloff in stopover arrivals at the same time net room yields are down.
Clearly, the required economic and fiscal policies are not in place which would widely allow accommodate sustained yearly economic growth and expansion of six to 10 per cent. The manufacturing and agricultural sectors need immense expansion and, clearly, interest rates will have to be reduced from their current high levels. Jamaica should be able to feed itself. Less and less persons, especially the young, are not getting involved in farming, and funding is also a major problem as well. Is RADA really an effective and well-funded agricultural promotion agency, the answer is clearly no. Over 70 per cent of mutton and pig meat is being imported into Jamaica. This speaks to the low-performing agricultural sector which has really been ignored by past and present government administrations. Jamaica should be earning from the agricultural sector the same level of foreign exchange earnings like tourism industry.
Unemployment is low but the majority of people who are gainfully employed are in low-paying jobs. I concur with Senator Bunting that the JLP-led administration is operating a plantation style economy which benefits just a few while the majority of the Jamaican people are suffering in many ways.
Many Jamaicans are employed on contracts and, in some cases, with no security of tenure and no benefits after they leave those jobs or retire from them. The health sector is in shambles. The current economic and fiscal policies are flawed and will not allow for tangible economic growth and expansion. Government corruption and the high crime rate is costing this country to lose close to J$150 billion per year. Jamaica’s economy is in need of policies which will drive growth.
ROBERT DALLEY
