A new study by the Bank of Jamaica (BOJ) aimed at estimating the “output gap” in Jamaica indicates that COVID – 19 has put a check on working hours, productivity and output.

The term output gap attempts to measure the difference between the actual output of an economy and the maximum potential output expressed as a percentage of gross domestic product (GDP). A country’s output gap may be either positive or negative.

The BOJ Working Paper “Estimating Jamaica’s Total Output (2021)” was authored by its Research Unit and prepared by Hubert Scarlett. It was published in May of this year.

The working paper concludes that, for the near term, the Jamaican economy is expected to operate “for the most part below capacity which signals no inflationary pressures over this horizon.”

https://www.jamaicaobserver.com/business-observer/economy-will-continue-operating-below-capacity-for-the-near-term-boj_224338?profile=1056