Jamaica’s economy shrinks as “Coronavirus” threat spreads: Opposition Party

Jamaica’s opposition People’s National Party (PNP) President, Dr Peter Phillips stated that Jamaicans should calliper for a possibility of shrinkage of the nation’s economy due to the global attack of the deadly “Coronavirus”.

The recently released growth data of the Jamaican economy showed 0.1% growth in the final quarter of 2019, which is negligible.

Dr Peter Phillips said: “The party is ready to be part of a national response to the threat of coronavirus, and the possible financial fallout which could wipe out a number of countries' economies across the world.”

“We are prepared to help to manage the crisis if called upon by the Government.  We are willing to work in every area and guide the Government through the economic crisis, crime, and the coronavirus crisis,” Dr Phillips said.

In a statement issued Sunday, the Shadow Minister for Finance, Mark Golding, pointed to recent statistics from the Planning Institute of that the projection for the 2019/20 fiscal year has been further reduced to 0.6%.

Golding said: “With growth having ground to a virtual halt in the second half of 2019, and the impact of the coronavirus now looming, the Jamaican economy could well be headed into a period of economic contraction.”

The Jamaican key sectors which majorly contribute to the economy are already in negative figures and the deep plunge of the bauxite/alumina industry with the closure of Jisco Alpart.

Golding also warned that several industries were at risk and said: “Bauxite/alumina faces waning demand from the dislocation in China, tourism is vulnerable due to vacationers' reluctance to risk international travel, and manufacturing is exposed to serious disruption in the international supply chain and much higher prices for alternative sources.”

Dr Phillips stated that Jamaica has to make adequate preparation to deal with any fallout from the crisis and included: “This has been building up over the last few years with the closure of bauxite plants, the slowing down of visitors to the island, and the downturn of transhipment activities at the port due to the trade war between the US and China. The Government should be going out now and be reasoning with the bauxite companies about a way to keep the plant open. They should be willing to review the tax situation.”