Caribbean Investment IQ December 2013 | Page 42

cost of tuition fees for the new school year and the upward movement in electricity costs. Also contributing to inflation is the depreciation of the currency. The exchange rate has continued its gradual depreciation relative to the US dollar that started in late 2012, with the currency falling 14% (y/y) by August 2013, which has helped limit the competitiveness gap that had opened up during previous years. According to the recently conducted Labor Force Survey, the unemployment rate as at July 2013 was 15.4% compared to 13.1% in July 2012. The unemployment rate for males was 11.7% compared to 19.9% for females. The survey put the number of unemployed persons at 201,600, an increase of 20.4% when compared with 167,400 persons in July 2012. The total size of the labor force is 1,309,700. The Jamaica Conference Board Index of Business Confidence fell sharply to 84.1 in the third-quarter of 2013 from 101.4 in the second quarter. The deterioration was attributed to rising unemployment and the depreciation of the Jamaica dollar. Jamaica’s net international reserves decreased by 2.17% to USD890.43 million in October representing a 20.9% decline for the first ten months of the year. The decline was attributed to a 0.8% increase in foreign assets held by the Bank of Jamaica and a 4.2% increase in its foreign liabilities, namely the IMF. Reserves cover nearly 11.97 weeks of goods and services imports but are expected to be further bolstered by additional multilateral disbursements associated with the country’s new IMF accord. On May 1, 2013, the IMF Executive Board approved a request by the Jamaican authorities for a four-year extended arrangement in an amount of SDR 615.38 million. The first and second reviews were completed in September and November with Jamaica meeting its targets. All endJune quantitative conditions and all structural benchmarks were met. The 2013/14 budget is in line with the program. Economic developments remain in line with program assumptions and the macroeconomic outlook and financing scenario remain broadly unchanged from the program On May 1, 2013, the IMF Executive Board approved a request by the Jamaican authorities for a four-year extended arrangement in an amount of SDR 615.38 million. Source: Statistical Institute of Jamaica First Quarter Source: Statistical Institute of Jamaica 42 Caribbean Investment iQ December 2013 Second Quarter Other Government Real Estate Finance Q2 2013 Q1 2013 Q4 2012 Q3 2012 Q2 2012 Q1 2012 Q3 2011 Q4 2011 Q2 2011 Q1 2011 Q4 2010 Q3 2010 Q2 2010 Q1 2010 Q4 2009 Q3 2009 Q2 2009 -5 Q1 2009 -4 Logistics -3 Hospitality -2 Distribution 0 -1 Construction 1 Utilities 9 7 5 3 1 -1 -3 -5 -7 -9 -11 2 Manufacture 3 Mining Figure 26 Economic growth by industry (2013) Agriculture Figure 25 Jamaica Economic Growth (2009-2013)