Tropical Storm Nicole - Planning Institute of Jamaica
Tropical Storm Nicole - Planning Institute of Jamaica
Tropical Storm Nicole - Planning Institute of Jamaica
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Real value added for the Finance & Insurance Services industry declined by 4.5 per cent in the<br />
period January–June 2010, influenced mainly by: a) lower stock <strong>of</strong> Loans & Advances compared<br />
with the similar period <strong>of</strong> 2009; and b) the negative impact on net interest income <strong>of</strong> the JDX which<br />
was introduced in February 2010.<br />
The growth <strong>of</strong> 2.9 per cent in Hotels & Restaurants/Tourism industry was influenced mainly by the<br />
increase in stopover arrivals during the first three months <strong>of</strong> the year, as the May 2010 Western<br />
Kingston civil unrest had an adverse impact on the tourist industry. The increased expenditure for<br />
damage control to the island should augur well for the industry in terms <strong>of</strong> setting it on a renewed<br />
growth path amidst the negative publicity.<br />
4. The External sector<br />
BOP January – May 2010<br />
For the January - May 2010 period, there was a current account deficit <strong>of</strong> US$193.7 million, an<br />
improvement <strong>of</strong> US$102.3 million compared with the corresponding period <strong>of</strong> 2009. The<br />
contraction in the deficit during the first five months <strong>of</strong> 2010 stemmed from improvements in all<br />
sub-accounts with the exception <strong>of</strong> the goods sub-account.<br />
During the January-May 2010 period, the deficit on the Goods sub-account was US$1.24 billion, a<br />
deterioration <strong>of</strong> US$60.3 million compared with January – May 2009. This increase in the deficit<br />
was attributable to a US$21.3 million decrease in exports and a US$39.0 million growth in imports.<br />
Lower export earnings were influenced mainly by a decline in the value <strong>of</strong> alumina and sugar<br />
exports. The rise in the value <strong>of</strong> imports was associated with a 32.9 per cent expansion in the<br />
mineral fuel imports.<br />
The surplus on the Services sub-account increased to US$441.1 million during January – May 2010<br />
from US$407.0 million in the corresponding 2009 period. This improvement stemmed mainly from<br />
increased inflows in the travel category, due to a growth in touirist arrivals.<br />
The Income sub-account registered a deficit <strong>of</strong> US$185.9 million compared with a deficit <strong>of</strong><br />
US$255.6 million in the corresponding period <strong>of</strong> 2009. This US$69.7 million improvement was due<br />
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