Jamaican Businesses See Bright Future In 2016 … As Credit Skyrockets …

The Governor of the Bank of Jamaica (BOJ), Bryan Wynter is reporting that business Credit is up in June 2016 by some 14.4 percent … highest since 2013 … year to date when compared with 2014/5 business was 5 percent.

Growth

The Deputy Governor of the said Central Bank (BOJ), Wayne Robinson is projecting growth in the tourism sector of between 4.5-6.5 percent.

Perspective

Inflation

Dr. Peter Phillips

Dr. Peter Phillips, former Finance Minister in the PNP led Simpson Miller led government seem to have adopted a low inflation model as his approach to good financial management. As the IMF resident representative Dr. Constant Lonkeng Ngouna asserts … the indirect taxation model tends to lead to attract a higher level of inflation.

The IMF representative said the indirect model taxation model was recommended to the PNP but they had another approach.

It should be noted that the IMF does not micro manage the economies of the countries they assist with budgetary support.

Commodities imported tend to be influenced by world markets and market forces influence their prices.

Social Safety Net

Those at the lower income levels can be greatly impacted by these external market forces, hence provisions to assist those most vulnerable have to be put in place. This protection is referred to as a social safety net.

A low inflation model seem not to be consistent with growth. Our experience in Jamaica is that there has been anemic growth under the PNP. A prolonged period of under 2 percent growth seem to have occurred under the PNP. The JLP has a different approach and is projecting over 2 percent.

Economic Growth Council (EGC)

Some fifty meetings so far have been held with a broad cross section of stakeholders, according to Lee Chin, Chairman of the (EGC).

The IMF has praised the JLP Government for adopting an indirect taxation model and will be working to ensure the 1.5 million dollar tax break to PAYE employees will be effectively implemented in 2017.

The IMF is awaiting the report of the EGC. They plan to work with the EGC said Dr. Constant Lonkeng Ngouna in an interview monitored by Vision.

We hope business confidence will continue to soar.

Paul Burke summoned a meeting of the Secretariat to discuss “Trust ” issues.

National Integrity Action (NIA) Head Dr. Trevor Munroe has suggested that the Police (MOCA) be asked to investigate and an independent investigation be launched to examine the Campaign Funding Scandal.

Hopeton O’Connor-Dennie is Senior International Correspondent & Photojournalist for Vision Newspaper Canada