Investment in Jamaica – Forecast for Growth
According to a World Bank report early this year, Jamaica is expected to see about 2 percent growth this year.
Overall growth in the Latin American and Caribbean region ( LAC ), by comparison, was to be about 1.2 percent ( reference: the Global Economic Prospects: Latin America and Caribbean Weak Investment in Uncertain Times report ).
Further projections for Jamaican growth were for 2.3 per cent in 2018 and 2.5 per cent in 2019.
I’ve checked and double-checked before saying what I’m about to say next about the Jamaican Stock Market. The JSE index ramped up 65% growth over the last year!!! The index!!! Ok here’s the link for the JSE market index.
(Now back to the macro-economics, so we can further assess sustainability, etc )
In 2017, Jamaica is expected to grow at the 16th-fastest rate in the region among the 27 nations in LAC compared with a raning of 21st in 2014.
Regarding the national debt, Jamaica has enjoyed significant improvement from 145% of GDP in 2012 down to 121% GDP by the end of 2016!! This has been the result of “ambitious” governmental reforms that have been supported both nationally and internationally.
“Growth is expected to reach 1.7 percent in FY 2016/17, as ongoing investments, including in tourism, crystallize and agriculture bolsters its strong recovery,” and we need more jobs in Jamaica to escalate the issue, IMF said. The IMF noted that inflation remains low, and gross international reserves continue to increase, reaching almost US$3 billion at the end of July. It pointed out, that unemployment remains high, at 13.7 percent. Note however, that figure is down from 15.3% in 2013.
The World Bank, the Inter-American Development Bank, and the International Monetary Fund (IMF) have committed nearly US $2 billion in funding between April 2013 and March 2017. At the end of 2016, the IMF also approved a three-year US$1.6 billion in additional funding. The International Finance Corporation ( IFC, the private sector arm of the World Bank Group ) continues to support private sector development in Jamaica.
I see the Jamaican economic picture as positive after recently being considered very negatively. I see this as a good time for investment in Jamaica. The rise from 21st place to 16th in 3 years is eye-catching to say the least.
The prime minister has expressed his desire to see economic progress benefit everyone in Jamaica, and not just a few. Perfect. I see that focus as also creating leverage-effect and longevity for the trend.
How to invest in Jamaica
In order to invest in the Jamaica Stock Exchange, you’ll need to contact one or more of the twelve stock brokerage companies authorized by the Financial Services Commission and the Jamaica Stock Exchange (JSE) to trade shares in Jamaica:
Transactions are done on a cash basis, meaning you are required to pay by cash or cheque for the stock you purchase.
The JSE operates on a T+3 settlement system. This means that settlement is due up to three days after the transaction date. Buyers make settlement by paying the full cost of the transaction.
With the advent of the Jamaica Central Securities Deposit (JCSD), it is no longer absolutely necessary for investors to receive a physical certificate as evidence of their ownership of stock. You would be required to open an account at the JCSD through your broker to facilitate the electronic settlement of your transaction through the book entry system that it uses.
Thank you, to Tramayne Douglas for this YouTube video.
I’m not going to say much more here…. Except that I’m going to check that chart of the JSE index a couple more times before going to bed tonight….. See you in Jamaica!