DUNCAN…For 2020 and onwards we are looking forward to embed macroeconomic stability and fiscal responsibility
As we bring the curtains down on another year, in the life of Jamaica’s economic landscape, one in which much has happened, there is the hope that people in the country can look forward to bigger and better economic realities and pursuits for the coming year.
The year 2019 was marked by several high and low points in the business arena, it was a year in which the country’s debt to gross domestic product (GDP) was significantly reduced, now trending below 100 per cent, unemployment recorded an historic low level, the Jamaican stock market ranked in the top-performing indices among other markets in the world; also witnessing increased volumes of companies making public offers both on the main and junior markets and several other businesses maintaining steady financial growth.
The economy which dipped to negative 0.1 per cent growth for the latest quarter and which averages about 1.5 per cent growth rate for the year, has also made some strides as evidenced by consecutive growth over the past quarters.
During the past year several attempts were also made to improve the issue of access to finance especially for small- and medium-sized enterprises (SMEs), including other measures to offset growth and inclusion for this largely underserved sector. There was also the issue of a depreciating dollar which slid pass the psychological threshold of $140 to US$1 leaving many frantic.
As we look forward to the ending of a decade, many will be looking towards the next, when the country is supposed to realise Vision 2030 its blueprint development plan –Vision 2030, along with the attainment of its intended goals and outcomes.
The Jamaica Observer sought the views of some key players in the business community as it relates to their expectation for business and the economy as the country ventures into another new year . The responses shared with the Business Observer are captured below.
Keith Duncan— President of the Private Sector Organisation of Jamaica (PSOJ) and co-chair of the Economic Programme Oversight Committee (EPOC)
“For 2020 and onwards we are looking forward to embed macroeconomic stability and fiscal responsibility wherein there will be an entrenched fiscal council and central bank independence. We will also be looking forward to increased access to finance for micro small- and medium-sized enterprises (MSMEs) as these entities must move forward to become formal and financial institutions, seeking to create products and services which are fit for purpose.
“The Government and the Bank of Jamaica (BOJ) must also clear hurdles and create a favourable environment — legislative and otherwise — for them, that is consistent with their strategy of financial inclusion.
“In going forward it is also important to bridge the gap between the economic and social hence in areas such as social transformation, resources should be injected into our most vulnerable, violence-producing communities and people which over the years have been starved of resources. This should also effect the transformation of education and training so as to get greater quality and equipped resources for greater and inclusive growth.
“Government should also work towards gaining bipartisan national consensus on crime strategies also that relating to the creation of a national identification system (NIDS), which will significantly help to increase efficiency, the ease of doing business and assist in our crime strategy. The strengthening of our anti-corruption agencies such as the major organised crime and anti-corruption agency (MOCA), Integrity Commission and the Financial Investigation Division (FID) will also be useful in helping to reduce corrupt practices and increase confidence in our institutions and leadership.”
Valerie Viera —Chief executive officer (CEO) of the Jamaica Business Development Corporation (JBDC)
“I am optimistic going into 2020 because of the gains we made during the last decade, especially in the latter part. JBDC has been to every parish in Jamaica through initiatives like the Mobile Business Clinic. I am particularly heartened that large private sector entities are now coming out in strong support of MSMEs who make up approximately 90 per cent of the business sector and whose contribution to economic development is significant.
“Last year, the British Council signed on to fund a mapping of the creative and cultural industries in Jamaica. This will lead our developmental thrust in 2020, and we are eagerly awaiting the results which will guide us further. The signs are positive for the next decade and I am confident that with the right stimulation, MSMEs will emerge as key drivers in Jamaica’s economic growth.”
Richard Pandohie —President of the Jamaica Manufacturers and Exporters Association (JMEA)
“The year 2019 has been a mixed bag for the manufacturing sector. On the positive side, the sector has experienced growth, interest rates continue to be competitive but have not flowed down to SMEs in the productive sector. We see moves now being made to fix that through instruments like the enhanced Credit Enhancement Facility (CEF) by DBJ (Development Bank of Jamaica).
“Several announcements were made in the last budget to reduce some of the obstacles faced by the SMEs. On the negative side: the low level of labour productivity is a major concern; the unavailability of technical skilled labour is also a concern; and the lack of an integrated, joined-up approach by our policy makers continues to deprive us of an enabling environment to move our sector to.
“We need structural reforms to increase formalisation in the economy and innovation; Jamaica will not be a low-cost producer, we don’t have the economies of scale,. We will have to use innovation, value-added and the appeal of Brand Jamaica to target premium niche markets
“We therefore continue to advocate for policies to drive value-added exports and import substitution; the Government has met with us, and we are hopeful that in 2020 some changes will be made to create momentum and true partnership. The mood of the sector is cautiously optimistic, not as buoyant as the last couple of years. The major impediment to our productivity and also domestic consumption which is critical for many manufacturers is related to the out-of-control crime level.”
Richard Byles —Governor of the Bank of Jamaica (BOJ)
“I am very optimistic about the prospects for Jamaica’s economy in 2020, based on the opportunities created by our strong reform programme and our collective performance to date. It is a good time to be alive, and I am as happy and proud to be Jamaican as I am honoured and humbled to be the country’s central bank governor at this point in our history.
“For another year, we have maintained a sustainable position in the current account of the balance of payments which supports a flexible exchange rate, while foreign reserves remain adequate by any measure. Fiscal performance is very strong and public sector debt continues to decline at a steady pace. Interest rates remain low to support increased economic activity and the labour market continues to improve.
“As a true central banker, however, I must caution that it is not time to think we have arrived and start celebrating, as there is much work left to be done. The reforms continue, exports need to be boosted even further and we must get on top of issues like crime, while maintaining the discipline and focus on proper economic management that has brought us this far.
“Despite the challenges, however, the bottom line is that there has never been a better time to be a Jamaican investor, so 2020 is time for the Jamaican business sector to get even busier and help us conquer the world like Toni-Ann Singh.”
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