KINGSTON, Jamaica – As inflation makes a steady downward trajectory, Gillian Hyde, deputy managing director of JN Bank, is optimistic about the Christmas season for many small and micro business.
Inflation, which is essentially a measurement of the price of goods and services within the economy, as at October, was 4.9 per cent within the Bank of Jamaica’s range of four to six per cent. This is down from 6.87 per cent in December 2023. Inflation on food, however, has remained high due to the adverse weather conditions exacerbated by Hurricane Beryl in July and Tropical Storm Rafael in November.
Notwithstanding, the overall outlook remains positive for Mrs Hyde, who is urging consumers to support local artisans this holiday season to further stimulate economic activity and growth amid two consecutive quarters of decline.
“The season presents a renewed opportunity for us small businesses to thrive as consumers regain purchasing power,” commented Mrs Hyde, who oversees JN Bank’s microfinance and business banking divisions.
To support consumers, JN Bank’s parent company, the JN Group, will be staging the JN Mall in the expansive parking lot of the JN Bank head office, which is located in the busy Half Way Tree urban centre. The pop-up event, to take place from November 29 to December 1, will feature tens of artisans offering an array of craft and gift items at attractive prices, along with fashion, food and entertainment.
Gillian Hyde, deputy managing director of JN Bank
“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.”
Economist Keenan Falconer is similarly upbeat about the tempering inflationary rate and what it means for consumers and businesses alike. He noted that at 4.9 per cent, inflation is at its lowest since June 2021, at the height of the COVID-19 pandemic.
Keenan Falconer, economist
“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 and 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,” he said.
He added that interest rates have been coming down and businesses have expressed a demand for loans as they become relatively cheaper again. He stated that this means they can start putting in plans for expansion and generate other activities.
Mr Falconer noted that business confidence has remained fairly steady despite the tight monetary environment that the country has experienced over the last three years.
“So overall, the picture is looking much better than it did two years ago in the post-Covid era, and I think spending is likely to be more buoyant than it was before,” he explained. “It also means that sales will increase because consumers feel that they can spend more now so business activity is likely to start increasing again going into the New Year,” he said.
