The Government has performed and
the work is bearing fruit through the positive reports and reviews Jamaica has
received throughout 2014 from international bodies. Given the recent
development, and giving credit to the Government, Jamaicans can once again
begin to align their enterprise with the goal of building potential wealth in a
competitive global environment. When all this is holistically viewed it becomes
hard to disagree that Jamaica is the most valuable property in the Caribbean. Some of the year's achievements and positive indicators are noted in the
following:
- Fiscal
deficit narrowing; down from 6.7% of GDP in 2011 to a balanced budget in
this financial year 2014-2015.
- Growing primary
surplus; the country ahead of the targets.
- Improving NIR in 2014 relative to 2013.
- Lower imports in a
context of a devalued currency making import a little bit more costly.
- Tourism arrivals are
up by 4%.
- Murder
rate for 2014 is down relative to the previous year. 16 per cent fall off
in murders and other categories of serious crimes so far this year. The Jamaica
Constabulary Force’s data show that 846 persons were killed since the
start of the year up until the end of October 2014. 166 fewer murders than
the 1,012 recorded for the corresponding period 2013.
- STATIN reports that
25,700 Jamaicans were employed this year over last year. Unemployment as a
result is declining.
The above work of the
Government among others has resulted in:
- Jamaica continuing to perform positively while passing critical IMF monitored Economic Reform Programme tests.
- IMF – Continues
support with the Extended Fund Facility.
- Jamaica's improved ranking in the World
Economic Forum's - Global Competitiveness Index.
- World Economic Forum
- Global Competitiveness Index - 86/144 up from 94 in 2013.
- Jamaica's
improved ranking in the World Bank - Ease of Doing Business Report.
- World Bank - Ease of
Doing Business Report. – 58/189 - Ranked first in the English speaking
Caribbean. Up from 85 in 2013.
- Ease of starting a
business.
- Cheaper electricity
connection rates.
- Establishment of a Credit
bureau.
- Improved position on the World Bank’s –
International Logistic Performance Index.
- Ranked 70/160 up from
124 in 2012.
- Jamaica has gotten a
stable to positive outlook from S&P.
- Standards and Poor upgraded Jamaica's economic outlook from stable to positive.
- International bond
market over-subscription with the lowest interest rates ever.
- Yet to be quantified
growth in Foreign Direct Investments.
Exchange Rate
The exchange rate according to the Bank of Jamaican, in January 2012 stood at US$1:JM$86.78. Today the exchange rate is US$1:JM$114.22. The Jamaican dollar has devalued by some 30.47%. This is creating valuable opportunities for the export of Jamaican goods and services as they should have become economically more attractive having in a sense gotten relatively cheaper.
Huge Growth Potential
Given the current trend if
sustained and built upon annual economic growth could rise steadily from
approximately 1% in 2014 to over 4% within the next five years. This is not
unforeseeable when one considers that Brand Jamaica is still growing. Sport and
entertainment continue to generate huge value for Jamaica from goodwill
internationally.
The Jamaican Value
With the devaluation in the
dollar over the last two years Foreign Direct Investments (FDI) into Jamaica has
become over 25% more valuable. Exports at the same time are at least 25% more
competitive. When the idea of coupling a US dollar investment in an export
market oriented industry investors could potentially earn very big dividends.
Now given all of the above Jamaica is well positioned to take advantage of many
investment opportunities some of which one may consider are discussed below.
Super Jamaican Opportunities
Agricultural Opportunities
International
Trade Centre data show that Jamaica imported US$10.7 million in sheep meat and US$4.6
million in goat meat in 2012. Data from a Jamaica Gleaner 2014 report noted
that chicken back imports in 2013 amounted to
JM$2.7 billion or some US$26.8 million. Combined these three meats alone
account for a market size of approximately US$42.1 million or JM$4.424 billion.
Assuming that the value of imports have remained the same since, supplying the local market with cost effectively locally
produced meat local producers have the opportunity to take bites out of this
US$42.1 million market. Import substitution represent one major area for
potential investment and its value continues grow with the depreciation of the
Jamaican dollar. The exchange rate is now US$1:JM$113.22, where might it be in
the next five (5) years? There are a host of other crops and livestock that can
be produced for the local, tourism and export markets that too have very huge
potential.
Tourism Opportunities
Brand Jamaica
is larger than ever and continues to grow, no small thanks to the continued efforts
and exploits of the sports and entertainment talents of Jamaicans. The Tourism
Industry has been a major benefactor and will continue to be so in the
foreseeable future. The industry has been seeing meaningful growth over the
last 3 years and is projected to compound this growth by at least one (1)
percent over the next few years. Jamaica’s True Treasures continues to be
unearthed.
Export Manufacturing
Opportunities
Creative products that have
inputs from locally produced raw materials have immense export potential building
on brand Jamaica and represent a huge investment opportunity. Jamaican food and
beverage, designer fashion and designer craft and
furniture all represent interesting avenues worthy of exploration. Value added
products also have an opportunity on the assumption that imported raw materials
can be sources at very low cost and should not be overlooked.
Jamaican people skills opportunities
Business Process Outsourcing
(BPO) has been taking root within the nation and is beginning to represent a
very lucrative area for investment. The myriad of international companies can
look towards Jamaica for experience customer services and, IT professionals.
With increased ranking in the International Logistics Performance Index and
work on an Integrated Logistics Hub along with Jamaica’s central location in
relation to Africa, Europe, North and South America there is potentially no
better opportunity than investing in the Jamaican people.
Land, Property Development and
Real Estate Investment Opportunities
With the residential real estate
market being reportedly down in 2014 as new mortgages have declined foreign
investors have an opportunity and advantage as they have gained an edge through
the increased value they would hold as a result of the foreign exchange dollar
holdings and assets. With a projected increase in FDI, demand for Jamaican
property will grow, and in the context of all of the above property values are
expected to continue rising steadily over the foreseeable future. As an added
benefit property values in Jamaica has consistently outpaced inflation and
devaluation.
All this currently drive Jamaica’s value and will continue
to do so in the foreseeable future.
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