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PIOJ reports 0.4 per cent economic contraction for June quarter

Published:Tuesday | August 27, 2013 | 5:25 PM

Jerome Reynolds, Staff Reporter



The Planning Institute of Jamaica (PIOJ) is reporting that the economy contracted by about 0.4 percent in the April to June 2013 quarter when compared with the corresponding quarter in 2012.




The PIOJ says the contraction was influenced by the continued effect of Hurricane Sandy on crops, the prolonged drought and the continued weak global economic environment.



It added that the impact of the National Debt Exchange on the investment income of financial institutions also affected the performance of the economy during the quarter.



Meanwhile, the PIOJ says it expects the economy to improve during the current July to September quarter.



It has forecast growth within the range of 0.5 percent to 1.5 percent.



The PIOJ says this projection is based on the expected turnaround to positive performance for most industries, the rolling out of capital projects which were outlined in the budget and the continuing global economic recovery.



It adds that it expects a restoration of investor confidence following the government's passing of the first quarterly test of the International Monetary Fund last week.



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