Home  News Regional News Government calls on financial experts
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Government calls on financial experts |
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Sunday, 19 October 2008 |
KINGSTON – The Jamaica government has assembled a high-powered team of the country’s top financial experts to monitor the global economic crisis and its impact on the local economy.
Prime Minister Bruce Golding, in making the announcement Thursday evening, said the team would be charged with determining what actions should be taken to deal with the fall out locally.
“A team drawn has been set up to monitor and analyze, on a day-to-day basis, developments in the global financial market to determine the likely impact on Jamaica and to allow for timely and pro-active policy intervention,” he said.
Over the past few days, Golding and Finance Minister Audley Shaw have been criticized by the opposition People's National Party for stating that Jamaica would be able to withstand the financial shock that has been reverberating across the globe.
But with the situation worsening, the prime minister has met with officials from the financial sector to discuss the crisis and to assess the immediate and longer-term implications for the Jamaican economy.
“It is clear that the crisis is still unfurling…no one can determine whether the worst has passed or the worst is yet to come. Nor can anyone be sure how long it will last and how long it will take before recovery begins," Golding said.
Golding told Addressing members of the Jamaica Manufacturers Association that the impact of the recession would no doubt affect exports, balance of payments and investments.
"Global demand is expected to decline and as consumer spending contracts this will affect local exporters…it is difficult to measure the extent of this impact since the level of demand will vary from one market to another and from one product to another.
"It is too early to determine the precise impact that the global situation will have on investment projects, to the extent that these are dependent on financing from the international capital market they will perhaps be affected by the liquidity crunch in the banking system – the money is just not there," he said.
Just one month ago, Golding’s Jamaica Labour Party administration expressed confidence that remittances would remain buoyant despite the deepening crisis. But the Jamaican leader said he now expects a slowdown.
"Remittances, which amount to some US$2 million annually, will come under stress as Jamaicans abroad are affected by the economic situation, especially in the US from which up to sixty five percent of our remittances are derived.”
Last year Jamaicans in the US sent home US$1.8 billion in remittances. Golding said that up to the end of August, remittances were recording a nine per cent increase over last year.
“We know from experience that remittances by Jamaicans tend to demonstrate resilience, even in times of economic slow down. So while we anticipate that there will be some tapering off, we still expect remittance flows to be above what came in last year."
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