JAMAICA, once the economic basket case of the Caribbean, is now in a much healthier state than Trinidad and Tobago, as evidenced by recent revelations.
PriceSmart, the international merchandiser, had a 22 per cent slump in T&T sales and 77 per cent increase in Jamaica, both during a recent third quarter.
It is another indication of the expanding Jamaican economy, which grew by 8.5 per cent in the third quarter of 2020, and is expected to stabilise at eight per cent during the current fiscal year.
PriceSmart’s decline in T&T business is because of the severe foreign exchange crunch, which has badly limited importations and led to a flourishing forex black market.
Also, with high unemployment and business closures, fewer and fewer people in T&T can afford to push baskets at the wholesale superstore.
The T&T economy has shrunk by double digits over the past few years.
Revenues have been falling by an average of five per cent each recent year.
Most economists forecast tough times ahead, with Dr. Ralph Henry stating that poverty would increase.
Dr. Henry said: “There is not enough of anything to maintain mind, body, health etc.”
He stated that at least 40 per cent of working people would have suffered some loss of income in recent times.
Economist Dr. Vaalmiki Arjoon said the recent economic downgrade of the country by Standards & Poors “incorporates the risks that poor economic performance and only modest GDP growth prospects prevent T&T from recovering the economic resilience lost in recent years.”
Former Trade Minister Vasant Bharath stated that the S&P report highlighted “the government’s incompetence in creating any economic activity in the five years preceding the Covid-19 pandemic…”
In contrast, Jamaica has been praised by the World Bank for “an extraordinary economic turnaround.”
Prime Minister Andrew Holness, whose leadership has been widely hailed, has been speaking of growth in several sectors, including construction and tourism.
“These are very resilient sectors of our economy,” Holness said.
Both sectors have declined in recent months in T&T.
Jamaica expects 1.61 million people to visit its country this year.
Construction in that Caricom nation has recorded three consecutive quarters of growth.
As for PriceSmart, its four T&T warehouses now represent the worst-performing segment of the Caribbean market.
It is a sign of the economic times!
