Drought causes IMF to change some projections for Jamaica

Due to the threat to economic growth, arising from the extended dry spell, the International Monetary Monetary Fund (IMF) has announced that it will make changes to some of  the projections for Jamaica.

IMF mission chief Jan Kees Martijn disclosed on Friday that there will be an updated Letter of  Intent, reflecting this change. This is expected to be submitted next month.

Martijn, speaking at a press conference in Kingston to report on the latest Staff Review of the Jamaican economy, reported that "the economic outlook continues to improve," with "activity... tentatively estimated to have expanded by 1.2% year-on-year during April-to-June 2014."

He said, however, that "the recent drought will temporarily eat into near-term growth and raise food price inflation," hence the need to make the adjustments.