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Jamaica's economy is poised to experience some growth - Chung

Published:Tuesday | May 5, 2015 | 5:00 AMKeisha Hill
Dennis Chung

Many developing countries like Jamaica face particular challenges that make it difficult for them to stimulate and sustain economic growth. But Dennis Chung, chief executive officer (CEO) of the Private Sector Organisation of Jamaica (PSOJ), is confident that Jamaica's economy is now poised to experience some growth.

"I am projecting about two per cent growth this year. The fiscal accounts and fiscal targets are coming together. Inflation and interest rates are moving in the right direction and the exchange rate is relatively stable and business confidence is up along with private-sector investments," Chung said.

According to Chung, although unemployment is a little above what it was last year, it should be expected, because the labour force is the weakest part of the economy and it is a big risk factor.

"The one thing I will say is that the wage negotiations could impact that equation. That is why it is very important for us to continue on the path that we are on and for both the Government and the unions to come to a more mutually beneficial situation to ensure that we are on a more sustainable path," he said.

The PSOJ CEO said it was important that the economy grows. If this is not done, he said, the country runs the risk of falling back into a situation of inflation, high interest rates and instability of the economy.

Chung recommended that the country bring the compensation that businesses and individuals get to be more in line with productivity.

keisha.hill@gleanerjm.com