(Jamaica Gleaner) The Jamaican economy has continued in a recession as data from the Bank of Jamaica (BOJ) have confirmed a fifth consecutive quarter of negative growth.
A recession is technically defined as at least two consecutive quarters of decline in gross domestic product (GDP).
At its quarterly press briefing yesterday, the BOJ reported that real GDP is estimated to have declined during the April to June quarter.
The contraction is reportedly slower than declines in the January to March quarter.
This decline last quarter continued a trend first started in March last year.
The BOJ Governor, Brian Wynter is attributing continued decline to severe drought conditions as well as weak domestic demand.
He says this is because of declines in income and increase unemployment.
The Governor admitted today that securing the agreement with the International Monetary Fund did not put to rest all fears in the market.
However, Governor Wynter is projecting improvements for the remaining quarters of the current fiscal year.
He points to improvements in investor confidence, expansion in the global economy and robust growth in credit to the private sector as areas to drive growth.
He says real GDP growth at the end of the next quarter in September should be between zero and one per cent.