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Jamaica could lose $6 billion in remittances as British Pound plunges after Brexit

Published:Friday | June 24, 2016 | 6:22 PM
William Mahfood ... an initial economic assessment of the effect of the Brexit vote on the local economy shows that remittances from the UK will be significantly affected.

Sherine Williams, Gleaner Writer

The Private Sector Organisation of Jamaica (PSOJ) says it is concerned Jamaica could lose up to $6 billion in remittances as a result of the sliding British pound following the Britain's decision to exit the European Union

Less than 24 hours after the Brexit vote last night, the pound sterling plunged by almost 10 per cent, causing France to replace Britain as the world's fifth largest economy.

PSOJ president William Mahfood says an initial economic assessment of the effect of the Brexit vote on the local economy shows that remittances from the UK will be significantly affected.

 

PSOJ president William Mahfood

Mahfood says the PSOJ is also concerned about the blow that Jamaica's tourism will suffer if the British economy declines and leaves people with less to spend on travel.

In a statement this afternoon, Prime Minister Andrew Holness said the Government is actively monitoring and assessing the situation to position Jamaica to advantageously manage these developments.

Earlier today, Foreign Affairs Minister Kamina Johnson Smith said the UK's decision to leave the EU will have significant implications for Jamaica-UK relations and possibly for Jamaica-EU relations.

Senator Johnson Smith says the UK leaving the EU means that Britain will eventually cease to be part of the relevant arrangements that govern Jamaica-EU relations, including the ACP-EU Cotonou Partnership Agreement and the CARIFORUM-EU Economic Partnership Agreement.