MARCH 2010 VOLUME 20 - NO. 3
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Mar 16, 2016
MARCH 2010 VOLUME 20 - NO. 3 Inflation Rates 4 Foreign Exchange 7 Instalment Credit 4 Actual Production 4 Building Societies 4 Balance of Payments 5 Monetary Aggregates 2 Stock Market Activities 4 Interest Rates (Selected) 3 BOJ Net International Reserves 7 Reviews on Balance of Payments 9 Commercial Banks Deposits and Loans 2 Commercial Banks Assets and Liabilities 2 Pages ISSN 1018-9084 Telephone: (876) 922 0750-9 Fax: (876) 922 0854 E-mail: [email protected] Internet: www.boj.org.jm
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MARCH 2010 VOLUME 20 - NO. 3
Pages
Figures 1-6 1
Monetary Aggregates 2
Commercial Banks Assets and Liabilities 2
Commercial Banks Deposits and Loans 2
Interest Rates (Selected) 3
Securities 4
Instalment Credit 4
Near-Banks 4
Building Societies 4
Inflation Rates 4
Actual Production 4
Stock Market Activities 4
External Trade 5
Tourism 5
Balance of Payments 5
BOJ Net International Reserves 7
Foreign Exchange 7
Reviews on Balance of Payments 9
CONTENTS
2010 Bank of JamaicaNethersole Place
KingstonJamaica
Telephone: (876) 922 0750-9Fax: (876) 922 0854
E-mail: [email protected]: www.boj.org.jm
ISSN 1018-9084
1
Figure 3 Figure 4
SELECTED ECONOMIC INDICATORS
Figure 1 Figure 2
Figure 5
Monthly Inflation Rates Mar 2009 - Mar 2010
0.0
0.5
1.0
1.5
2.0
2.5
Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar -10
Months
Per
Cen
t
BOJ Net International ReservesMar 2009 - Mar 2010
0
500
1,000
1,500
2,000
2,500
Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10
Months
US$
MN
Commercial Banks' Loans and DepositsMar 2009 - Mar 2010
050
100150200250300350400450
Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10
Months
J$BN
Loans Deposits
Commercial Banks' Weighted Interest Rates Mar 2009 - Mar 2010
0.0
2.5
5.0
7.5
10.0
12.5
15.0
17.5
20.0
Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10
Months
Per
Cen
t
Time Deposit Rate Loan Rate
Money Supply (M1) Mar 2009 - Mar 2010
0
1020
30
40
5060
70
80
90100
110
120
Mar -09 Apr -09 May-09 Jun-09 Jul -09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar -10
Mo n t hs
J$BN
Money Supply (M1) Curr with Public Demand Deposits
Rates on BOJ OMO Instruments and Annual Average Inflation Rates
Mar 2009 - Mar 2010
0.00
5.00
10.00
15.00
20.00
25.00
30.00
Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10
Months
Rat
es
30-day 60-day 90-day 120-day180-day 365-day Ann. Avg.Infl.
2
1. MONETARY AGGREGATES (J$mn.)Local and Foreign CurrencyMoney Supply (M1)....................................................
(a) Currency with the Public......................................(b) Demand Deposits (adj.)***..................................
Quasi-Money.....................................................................(a) Time.................................................................(b) Savings.............................................................
Money Supply (M2)....................................................Domestic Credit .................................................................
Local CurrencyMoney Supply (M1).........................................................
(a) Currency with the Public.....................................(b) Demand Deposits (adj.)***................................
Quasi-Money....................................................................(a) Time........................................................................(b) Savings..................................................................
Money Supply (M2)........................................................ Domestic Credit ................................................................
Base Money................................................................
II. COMMERCIAL BANKS (J$mn.) *Assets & Liabilities (J$mn.)**....................................
Loans**.......................................................................Agriculture..............................................................Manufacturing........................................................Construction & Land Development.......................... Mining............................................................................
Tourism..........................................................................Transport, Storage & Communication......................Consumer-Oriented................................................Government Services...................................................Other.......................................................................
DEPOSITS..................................................................Private Sector (including overseas residents).........
Time...................................................................Savings..............................................................Demand.............................................................
Government............................................................Time...................................................................Savings..............................................................Demand.............................................................
Public Entities.........................................................Time...................................................................Savings..............................................................Demand.............................................................
Mar 2010 100,186.87 39,321.54 60,865.33 225,776.74 54,404.47171,372.27325,963.61319,657.25
Mar 201088,654.9839,321.5449,333.44
120,525.9926,340.8194,185.18
209,180.97246,316.91
Mar 201077,322.45
Mar 2010591,766.53
256,993.676,293.749,088.57
16,962.76421.55
38,304.479,582.81
132,733.3037,534.266,072.21
Mar 2010378,413.53312,843.2071,299.76
181,159.1760,384.27
31,324.701,372.292,240.90
27,711.51
19,749.447,618.766,635.235,495.45
Mar 2009 96,779.18 36,847.78 59,931.40
220,896.91 55,817.66165,079.25317,676.09344,805.27
Mar 200985,512.9536,847.7848,665.17
117,330.4027,099.4490,230.96
202,843.35235,069.50
Mar 200971,202.56
Mar 2009572,720.30
259,146.684,529.669,207.18
15,115.80634.14
44,189.6712,376.85
133,749.9534,294.155,049.28
Mar 2009353,880.53306,003.2372,622.64
174,004.9559,375.64
29,322.991,727.932,927.34
24,667.72
7,814.363,235.552,315.282,263.53
% Change p.a.
3.526.711.562.21
-2.533.812.61
-7.29
3.676.711.372.72
-2.804.383.124.78
8.60
3.33
-0.8338.95-1.2912.22
-33.52-13.32-22.57-0.769.45
20.26
6.932.24
-1.824.111.70
6.83-20.58-23.4512.34
152.73135.47186.58142.78
Feb 2010+ 106,978.17 40,772.43 66,205.74
229,904.18 56,415.79173,488.39336,882.35356,167.95
Feb 201094,448.9040,772.4353,716.47
123,107.3527,255.4495,851.91
217,596.25262,456.05
Feb 201076,862.48
Feb 2010590,617.67
253,568.126,222.839,035.63
16,894.82353.77
38,871.147,615.04
131,340.6736,977.316,256.91
* PanCaribbean Commercial Bank began operations in June 2008 ** Includes provision for loan losses; and excludes loans acquired by FINSAC. *** Excludes Deposits of Government, Public Entities, Financial Institutions and Non Residents
Feb 2010376,280.64320,402.8572,091.62
183,505.4664,805.77
20,998.611,420.652,383.83
17,194.13
15,777.158,474.493,850.183,452.48
3
Mar 201014,496.193,577.241,828.429,090.53
Mar 2010622.76
Mar 201042.102.81
14.350.260.97
23.7128.00
Mar 2010
5.35-9.825.00-10.133.00-9.00
4.0921.516.57
Mar 20105.41
16.47
Mar 2010-
10.1810.49
--
Mar 201010.00
----
-
Mar 2010
1.00-2.951.00-3.201.00-3.70
1.00-4.45 1.00-4.75 1.00-5.25
10.431.31
Feb 201019,102.034,404.781,583.20
13,114.05
Feb 20101,298.55
Feb 201036.392.76
14.640.301.08
17.6128.00
Feb 2010
5.75-9.826.25-10.136.00-10.00
4.1321.407.43
Feb 20105.82
16.28
Feb 2010-
10.6311.01
--
Feb 201010.00
----
-
Feb 2010
1.00-3.151.00-3.451.00-3.95
1.00-4.70 1.00-5.001.00-5.50
10.431.45
II. COMMERCIAL BANKS (J$mn.) (Cont'd)Spec. & O. F. Insts..................................................
Time.................................................................Savings.............................................................Demand............................................................
Current Account Balances with BOJ (J$mn)..........
LIQUIDITY (Average) %Actual Liquid Assets Ratio......................................
Cash.................................................................Deposits with B.O.J.........................................Treasury Bills...................................................Local Registered Stocks...................................Other................................................................
Statutory Requirement.............................................
III. SELECTED INTEREST RATES (%)COMMERCIAL BANKS (Domestic Currency)
Fixed Deposits (J$100,000 & over)3-6 months..........................................................9-12 months........................................................Call Deposits......................................................
Average Savings Deposits .......................................Average Loan Rate..................................................
Average Inter-bank Rate ...........................................
Weighted Fixed Deposits Rate...............................Weighted Loan Rate................................................
G.O.J. Treasury Bills (Weighted Average) Yield 2 Months:........................................................
3 Months:........................................................ 6 Months:........................................................ 9 Months:........................................................12 Months:........................................................
BOJ Open Market Rates (%)30-Day .....................................................................60-Day .....................................................................90-Day .....................................................................
120-Days .................................................................. 180-Days ................................................................. 365-Days .................................................................
COMMERCIAL BANKS (Foreign Currency) Fixed Deposits (Under US$100,000)
1-3 months...............................................................3-6 months..........................................................6-12 months........................................................
Fixed Deposits (US$100,000 & Over)1-3 months..........................................................3-6 months..........................................................6-12 months........................................................
Average Loan Rates ................................................ Average Savings ..........................................................
Mar 200910,739.952,056.362,485.146,198.45
Mar 2009146.83
Mar 200938.702.47
14.290.301.42
20.2228.00
Mar 2009
7.30-16.337.00-18.117.00-13.00
5.8922.348.29
Mar 20096.99
16.58
Mar 2009-
20.5121.77
--
Mar 200917.0017.5020.0020.2021.50
24.00
Mar 2009
1.00-4.851.00-5.351.00-5.85
1.00-5.601.00-6.101.00-6.60
11.431.93
% Change p.a.
34.97 73.96 -26.43 46.66
+ Revised
`
4
% Change p.a.IV. SECURITIES (J$mn.) (outstanding balances)
GOJ Local Registered Stock.....................................
GOJ Treasury Bills..................................................... BOJ Open Market Operations 1/..............................
V. INSTALMENT CREDIT (J$mn.)(Banks & Near-Banks)Total Credit Outstanding.........................................New Business............................................................
VI. NEAR-BANKS (J$mn.)****(Merchant Banks, Trust Com. & Finance Houses)Assets/Liabilties..................................................................Loans Outstanding..............................................................Total Deposits......................................................................
Loans.........................................................................Agriculture.........................................................................Manufacturing.................................................Construction & Land Development................................Mining, Quarrying & Processing..................Tourism...........................................................Transport, Storage & Communication...............................Consumer Oriented............................................................Government Services........................................................
Other....................................................................................
Liquid Assets Ratio (average) %.............................Statutory Requirement...........................................
VII. BUILDING SOCIETIES (J$mn.)(members & associate members)
Assets/Liabilities..............................................Loan Balances..................................................Savings Funds..................................................
VIII. INFLATIONConsumer Price Index (Dec. 2006 = 100)..............Monthly Rate (%)................................................Calendar Year to Date (%)........................................Fiscal Year to Date (%) ............................................
IX. ACTUAL PRODUCTION ('000)Crude Bauxite (tonnes)..........................................Alumina (tonnes)..................................................Sugar (tonnes)........................................................Banana Exports (tonnes).........................................
X. STOCK MARKET ACTIVITIESIndex**............................................................Volume Traded (mn.)***....................................... Ordinary Shares............................................. Block Transactions........................................
Mar 20094,094.50
119,337.59
Mar 2009
30,868.911,114.91
Mar 2009
34,729.5110,572.3614,770.96
10,572.3623.57
387.622,655.36
53.82516.15373.86
5,774.27130.96656.75
Mar 200927.4628.00
Mar 2009
147,428.8179,651.46
100,713.58
Mar 2009138.2
0.81.3
12.4
Mar 2009 107.05
225.3736.020.00
Mar 200979,022.64
498.02469.4228.60
Feb 20103,945.86
107,973.70
Feb 2010
28,847.01948.46
Feb 2010
32,639.799,458.94
12,185.99
9,458.9412.01
340.682,637.65
29.82451.36243.63
5,175.08124.37444.34
Feb 201030.1328.00
Feb 2010
161,441.8685,233.72
110,314.97
Feb 2010155.9
2.23.6
12.8
Feb 2010314.74111.1830.450.00
Feb 201079,094.75
64.2064.200.00
-2.31 1.69
-6.13 28.63
-6.88-12.06-16.86
-12.06-49.85-13.48-1.30
-47.31-13.55-61.77-10.72-11.70-32.83
9.717.19
10.45
13.31
268.02 -48.32-11.10
-
8.84-49.97-46.93
-
Mar 20104,000.00
121,349.20
Mar 2010
28,975.281,434.14
Mar 2010
32,338.839,297.72
12,280.62
9,297.7211.82
335.352,620.93
28.36446.21142.94
5,155.35115.64441.12
Mar 201030.1428.00
Mar 2010
161,745.6785,375.38
111,242.66
Mar 2010156.6
0.54.1
13.3
Mar 2010393.97116.4832.020.00
Mar 201086,010.60
249.14249.14
0.00
1/ As at May 2005 the Bank of Jamaica no longer issues ReverseRepurchases - No Production** As at end of month*** Monthly values**** As at June 2008 PanCaribbean Merchant Bank ended operations
Mar 2009201,936.09
Feb 2010177.17
Mar 2010168.10 -99.92
5
X. STOCK MARKET ACTIVITIES (cont'd) Value of Stocks Traded (J$mn.)***....................................
Ordinary Shares..................................................... Block Transactions................................................
Advance/Decline Ratio***................................................
XI. EXTERNAL TRADE (US$mn.)1. EXPORTS(a) Major Traditional Exports........................................
Bauxite....................................................................Alumina..................................................................Sugar.......................................................................
Bananas.................................................................(b) Other Traditional Exports........................................(c) Non-Traditional Exports........................................(d) Re-exports...............................................................General Merchandise Exports............................................(e) Freezone Exports..........................................................(f) Goods Procured in Ports.............................................Total Goods Exports.............................................................
2. IMPORTS (by S.I.T.C.)(a) Food........................................................................
(b) Beverage & Tobacco................................................(c) Crude Material..........................................................(d) Mineral Fuel ...............................................................(e) Animal & Vegetable Oil............................................(f) Chemicals..................................................................(g) Manufactured Goods..................................................
(h) Machinery & Transportation..................................... (i) Miscellaneous Manufactured Goods........................
(j) Miscellaeous Commodities........................................General Merchandise Imports Freezone Imports...........................................................
Goods Procured in Ports.................................................Total Goods Imports....................................................
Trade Balance................................................................
XII. TOURISMTourist Arrivals ('000)....................................................
Stop Overs...................................................................... Foreign Nationals.....................................................
Non-Resident Jamaicans.................................. Cruise.............................................................................
XIII. BALANCE OF PAYMENTS (US$mn.) Balance of Payments (Calendar)
1. Current Account...................................................A. Goods balance................................................
Exports (f.o.b.)..............................................Imports (f.o.b.)..............................................
B. Service Balance..............................................Transportation...........................................Travel........................................................Other Services............................................
*** Monthly values
Jan-Dec 20081,449.28
114.501,230.49
104.250.04
80.64 939.64
62.252,531.81
60.25151.81
2,743.87
886.3193.4973.43
3,354.7953.95
950.99 883.56 1,264.25 681.97 118.25 8,360.99 20.34 143.50 8,524.83
-5,780.96
Dec 2008 303.59 179.62 156.29 23.33 123.97
Jan-Dec 2008 -2,793.2 -4,802.9 2,743.9 7,546.8
428.1 -644.7 1,707.7 -634.9
Jan-Dec 2009525.7585.41
368.0072.330.01
90.54530.4877.02
1,223.79 57.35 105.00
1,386.14
802.3379.8654.87
1,396.6133.86
740.26 555.82 820.22 461.56 120.31
5,065.7016.1492.95
5,174.79
-3,788.65
Dec 2009 274.12 181.81 158.80 23.01 92.31
Jan-Dec 2009 -912.4 -3,123.4 1,386.1 4,509.5
751.8 -373.5 1,721.7 -596.4
Change-923.53-29.09
-862.49-31.92-0.039.90
-409.1614.77
-1,308.02-2.90
-46.81-1,357.73
-83.93-13.63-18.56
-1,958.18 -20.09
-210.73-327.74-444.03-220.41
2.06-3,295.29
-4.20-50.55
-3,350.04
1,992.31
% Change-9.711.221.61
-1.37-25.54
Change
1,880.8 1,679.5 -1,357.8 -3,037.3
323.8 271.2 14.0 38.5
51.01 71.68
-
%Change
744.31 744.31 0.00
26/12
2,042.85 2,042.85 0.00
30/9
Mar 2009 1,352.78 1,189.95 162.83 13/20
Feb 2010 Mar 2010
1/ Provisional+ Revised
Change
-18.1 -25.1 7.0
-104.3 48.0
-152.3
-1,880.8-7.7-7.7-3.3-4.40.0
-1,873.1 -269.2 -1,542.7
1,534.0 1,356.3 -928.0 -2,284.3
280.1 220.5 34.4 25.2
-41.3-20.8-20.5
-61.1 42.4
-103.5
-1,534.0-19.1-19.1-15.7-3.30.0
-1,514.9-84.8
-1,018.9
Balance of Payments (Calendar) (Cont'd)
C. Income................................................................Compensation of Employees...........................Investment Income..........................................
D. Current Transfers.............................................Official......................................................Private.......................................................
2. Capital and Financial Account..................................A. Capital Account................................................
Capital Transfers.............................................Official..................................................Private...................................................
Acq./Disp. of non-produced non-fin. assets....
B. Financial Account..............................................Other Official Investment.............................Other Private Investment.............................. (incl. errors & omissions)Reserves................................................
Balance of Payments (Fiscal)1. Current Account.................................................
A. Goods balance.............................................Exports (f.o.b.)............................................Imports (f.o.b.)..............................................
B. Service Balance..............................................Transportation...........................................Travel........................................................Other Services............................................
C. Income.........................................................Compensation of Employees........................Investment Income..........................................
D. Current Transfers.........................................Official......................................................Private.......................................................
2. Capital and Financial Account...............................A. Capital Account................................................
Capital Transfers.............................................Official..................................................Private...................................................
Acq./Disp. of non-produced non-fin. assets
B. Financial Account.......................................Other Official Investment.........................Other Private Investment..........................
(incl. errors & omissions)Reserves................................................
Jan-Dec 2008
-568.2 83.7 -651.9
2,149.8 100.7 2,049.1
2,793.2 18.1 18.1 48.6 -30.5 0.0
2,775.1 518.6 2,151.7
104.8
Apr-Dec 2008/2009
-2,281.1-3,730.61,965.05,695.6
211.2-511.0
1,185.7-463.5
-394.577.8
-472.3
1,632.874.4
1,558.4
2,281.1-2.6-2.6
19.1-21.7
0.0
2,283.7513.9
1,459.4
310.4
Jan-Dec 2009
-586.3 58.6 -644.9
2,045.5 148.7
1,896.8
912.4 10.4 10.4 45.3
-34.9 0.0
902.0 249.4 609.0
43.6
Apr-Dec 2009/2010
-747.1 -2,374.3 1,037.0 3,411.3
491.3 -290.5 1,220.1 -438.3
-435.8 57.0 -492.8
1,571.7 116.8 1,454.9
747.1-21.7-21.7
3.4-25.0
0.0
768.8 429.1 440.5
-100.8
6
7
* Foreign Currency balances represent the US dollar equivalent of the value of total transactions in major international currencies 1/ 'A' Accounts are tax free Foreign Currency Accounts held by non-residents + Revised
XIV. BOJ NET INTERNATIONAL RESERVES(US$mn.)
BOJ Net International Reserves (US$mn.)................Gross Foreign Assets..............................................Gross Foreign Liabilities........................................
Estimated Gross Reserves in Weeks of Goods Imports..........Estimated Gross Reserves in Weeks of Goods and
Services Imports...........................................................
XV. FOREIGN EXCHANGEDEVELOPMENTS (US$mn.) *Combined Foreign Exchange Trading
Foreign Exchange Purchases (spot)............................Foreign Exchange Sales (spot)...................................
Foreign Currency Deposit Balances of AuthorisedDealers (US$mn.)
Commercial Banks Balances..................................."A" Accounts 1/.......................................................
"B" Accounts ........................................................... Other.............................................................................
F.I.As Balance................................................................"A" Accounts 1/......................................................."B" Accounts ............................................................
Other..............................................................................
Building Societies Balances........................................."A" Accounts 1/........................................................"B" Accounts .............................................................
Other ...........................................................................
Total Foreign Currency Deposits (US$mn.)............
Total Foreign Currency Loans (US$mn.)................Commercial Banks................................................F.I.As ...................................................................Building Societies.................................................
Mar 2009
1,628.581,663.44
34.86
12.19
9.20
Mar 2009
618.74615.53
Mar 2009
1,625.64167.29
0.001,458.35
132.7770.350.14
62.28
455.84199.7754.26
201.81
2,214.25
1,586.521,445.79
60.4180.32
Mar 2010
1,751.882,414.42
662.54
26.51
18.61
Mar 2010
840.60835.31
Mar 2010
1,741.75143.90
0.141,597.71
97.1442.720.05
54.37
493.39219.2557.47
216.67
2,332.28
1,514.471,378.31
49.0087.16
%Change p.a.
7.5745.15
1,800.57
35.8635.71
7.14-13.98
-9.56
-26.84-39.28-64.29-12.70
8.249.755.927.36
5.33
-4.54-4.67
-18.898.52
Feb 2010
1,559.712,271.75
712.04
24.95
17.51
Feb 2010
690.56638.33
Feb 2010
1,771.76143.84
0.141,627.78
96.3542.750.04
53.56
494.07216.7057.03
220.34
2,362.18
1,514.001,377.97
50.6985.34
8 ** Indicative Rates
London Interbank Offer Rate (LIBOR) Eurodollars (%) 3 months............................................................. 6 months.............................................................
U.S. Prime Rate (end of period) (%)..........................
Selling Exchange Rates (end period) US$1.00 = J$...................................................... Can. $1.00 = J$.................................................... U.K. Pound = J$................................................... Euro = J$**.........................................................
Caricom Selling Exchange Rates** T.T. $1 = J$......................................................... Bdos. $1 = J$......................................................... Guy. $1 = J$....................................................... E.C. $1 = J$........................................................
Mar 20091.511.683.25
Mar 200988.8271.97
129.02116.84
14.15 44.38
0.44 32.87
Mar 20100.580.883.25
Mar 201089.5188.06
135.07120.16
14.07 44.76
0.45 33.16
Feb 20100.600.913.25
Feb 201089.7584.72
137.14121.36
14.15 44.87
0.45 33.24
9
JAMAICA:BALANCE OF PAYMENTS DEVELOPMENTS
DECEMBER 2009
DECEMBER 2009
Provisional data indicate that the current account deficit widened by US$52.0 million inDecember 2009, relative to the deficit in December 2008 (see Table). This deteriorationstemmed primarily from a contraction in export earnings, mainly related to a US$43.9 million (59.3per cent) decline in value of alumina exports. The performance of alumina exports continued toreflect the impact of the scaling back of activities in the mining sector as well as a decline of 7.3per cent in average realized price of the ore during the month. The impact of the fall in exportswas partly offset by a US$35.9 million reduction in spending on imports, mainly related tocontractions of US$15.1 million (17.4 per cent) and US$10.5 (14.3 per cent) in machinery &transport equipment and chemicals imports, respectively. The impact of the reduction in spendingon these imports was partially offset by expansions of US$49.8 million (70.6 per cent) and US$19.1million (39.6 per cent) in spending on fuel and miscellaneous manufactured goods imports,respectively. Fuel imports reflected a 70.9 per cent increase in the price of oil on the internationalmarket in December 2009, relative to December 2008.
A decline in net travel receipts was the main influence on a reduction in the surplus on the servicesaccount. For the review month, the deficit on the income account narrowed by US$33.7 million,mainly reflecting a reduction in the profit remittances of the direct investment companies.Concurrently, there was an increase in the surplus on the current transfers account due largelyto a 2.2 per cent rise in gross remittance inflows.
With regard to financing, net inflows from official and private investments were insufficient tooffset the deficits on the current and capital accounts. As a result, the NIR declined by US$75.8million for the month.
January – December 2009There was a reduction of US$1,880.5 million in the current account deficit for thecalender year 2009, relative to that for 2008. This improved performance was due largelyto a contraction in the merchandise trade deficit , stemming primarily from a decline of US$1,958.2million (58.4 per cent) in the value of mineral fuel imports. There were also declines in the valueof all the other categories of imports, with the exception of miscellaneous commodities. The impactof the contraction in imports on the merchandise trade deficit was partly offset by lower earningsfrom major traditional exports, particularly alumina, as well as non-traditional exports, mainlyethanol.
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For the review period, there was also an improvement in the services sub-account. The increase in the surplus on theservices sub-account resulted from a fall in freight and insurance charges, associated with the reduction in the valueof imports. Net earnings from travel also increased, primarily reflecting a decline of 19.3 per cent in spending byJamaicans travelling abroad.
The impact of the improvement in the merchandise trade and services sub-accounts on the current account deficit was,however, partly offset by an increase in the deficit on the income sub-account, as well as lower net current transfers.The deterioration in the income account was related to contractions in inflows associated with compensation toemployees. A contraction of 11.3 per cent in gross remittance inflows was responsible for the decline in current tranfers.
In relation to financing, net official and private investment inflows were insufficient to finance the current accountdeficit. As a result, there was an increase of US$43.6 million in the NIR for the year.
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BALANCE OF PAYMENTS SUMMARY (US$M)
December December Jan-Dec Jan-Dec
1/
2008 2009 Change 2008 2009 Change
1. CURRENT ACCOUNT -45.7 -97.7 -52.0 -2,793.2 -912.4 1,880.8 A. GOODS BALANCE -246.6 -331.3 -84.7 -4,802.9 -3,123.4 1,679.5 Exports (f.o.b.) 138.9 90.1 -48.8 2,743.9 1,386.1 -1,357.8 Imports (f.o.b.) 385.5 421.4 35.9 7,546.8 4,509.5 -3,037.3
B. SERVICES BALANCE 102.8 97.0 -5.8 428.1 751.8 323.7 Transportation -32.5 -34.7 2.2 -644.7 -373.5 271.2 Travel 194.4 188.9 -5.5 1,707.7 1,721.7 14.0 Other Services -59.1 -57.2 1.9 -634.9 -596.4 38.5
C. INCOME -90.9 -57.2 33.7 -568.2 -586.3 18.1 Compensation of employees 6.7 5.7 -1.0 83.7 58.6 -25.1 Investment Income -97.6 -62.9 34.7 -651.9 -644.9 7.0
D. CURRENT TRANSFERS 189.0 193.8 4.8 2,149.8 2,045.5 -104.3 Official 9.3 9.0 -0.3 100.7 148.7 48.0 Private 179.7 184.8 5.1 2,049.0 1,896.8 -152.2
2. CAPITAL & FINANCIAL ACCOUNT 45.7 97.7 52.0 2,793.2 912.4 -1,880.8A. CAPITAL ACCOUNT -2.6 -2.2 0.4 18.1 10.4 -7.7a. Capital Transfers -2.6 -2.2 0.4 18.1 10.4 -7.7 Official 0.0 0.0 0.0 48.6 45.3 - 3.3 Private -2.6 -2.2 0.4 -30.5 -34.9 -4.4
b. Acq./disposal of non-prod. non-fin'l assets 0.0 0.0 0.0 0.0 0.0 0.0B. FINANCIAL ACCOUNT 48.3 99.9 51.7 2,775.1 902.0 -1,873.1 Other official investment -2.8 16.4 19.2 518.6 249.4 -269.2 Other private investment 2/ 30.0 7.7 22.2 2,151.7 609.0 -1,542.7 Reserves 21.1 75.8 104.8 43.6
1/ Provisional 2/ Includes errors & omissions