As inflation continues its downward trend, optimism is rising for small and micro businesses in Jamaica, with JN Bank’s Deputy Managing Director Gillian Hyde anticipating a promising holiday season.
Inflation, which measures the price of goods and services, stood at 4.9% in October, within the Bank of Jamaica’s target range of 4-6%. This marks a significant decrease from the 6.87% recorded in December 2023. However, inflation on food remains elevated, driven by adverse weather conditions, including Hurricane Beryl in July and Tropical Storm Rafael in November.
Despite these challenges, Mrs. Hyde is encouraging Jamaicans to support local artisans this holiday season to boost economic activity following two consecutive quarters of economic decline.
“The season presents a renewed opportunity for our small businesses to thrive as consumers regain purchasing power,” said Mrs. Hyde, who oversees JN Bank’s microfinance and business banking divisions.
To further stimulate economic activity, the JN Group, JN Bank’s parent company, will host the JN Mall, a three-day pop-up event from November 29 to December 1. Held at JN Bank’s head office parking lot in Half-Way Tree, the event will feature dozens of artisans offering crafts, gifts, fashion, food, and entertainment at attractive prices.
“Our company, which pioneered the concept of microfinance in Jamaica through JN Small Business for more than two decades, deeply understands the role these micro and small enterprises play in the economy through jobs and the impact they have on families and communities,” Mrs. Hyde said. “By hosting this event for a second time, our intent is to once again provide entrepreneurs, some of whom were on board last year, with a platform to showcase their products, connect with customers, and grow their businesses. Supporting small businesses is not just an investment in their success but in the overall economic prosperity we all want to see.”
Economic outlook brings hope
Economist Keenan Falconer echoed the optimism, highlighting that inflation is at its lowest since June 2021, during the height of the COVID-19 pandemic.
“Prices are now rising at a much slower pace than they did before, and as a result, inflation expectations have moderated for the Christmas period. That might likely be good news for consumers because it can induce them to spend more, particularly as we experience rebound growth from Hurricane Beryl,” Mr. Falconer said.
He also noted that declining interest rates are making loans more affordable for businesses, encouraging expansion and investment.
“Business confidence has remained fairly steady despite the tight monetary environment of the last three years,” he added. “So overall, the picture is looking much better than it did two years ago in the post-COVID era. I think spending is likely to be more buoyant, and sales will increase because consumers feel they can spend more now. Business activity is likely to start increasing again going into the New Year.”
With inflation easing and business sentiment on the rise, both Mrs. Hyde and Mr. Falconer see this holiday season as a pivotal moment for small businesses to regain momentum and contribute to Jamaica’s economic recovery.
