Caribbean, Latin America Business In Brief
August 23, 2010
CaribWorldNews, NEW YORK, NY, Fri. Aug. 20, 2010: The Jamaican economy has been deeply impacted by the global crisis and Real Gross Domestic Product is projected to fall by 3.5 percent in FY 2009/10.That`s according to a recent assessment by the Executive Board of the International Monetary Fund. The board said tourism on the island has also been negatively affected, although it has proven to be far more resilient than in the rest of the Caribbean. However, inflation fell steadily from 26.5 percent in August 2008 to 9 percent in November 2009, reflecting weak domestic demand and a decline in global commodity prices from their mid-2008 peaks. The external current account deficit, according to the IMF, is expected to narrow from 18 percent of GDP to 9.5 percent, as the contraction in imports exceeds, by far, that of exports.Directors are recommending that Jamaican authorities implement more sustainable public employment reforms, with a view to securing fiscal savings over the long term, limit foreign exchange intervention to smooth excessive volatility and address longstanding institutional weaknesses through structural reforms. Meanwhile, they welcomed recent steps to divest Air Jamaica and encouraged the Bruce Golding administration to make further efforts to successfully conclude ongoing discussions with a foreign airline.JETBLUE BRINGS BACK `ALL YOU CAN JET` PASSJetBlue is bringing back its popular All-You-Can-Jet pass, which allows anyone to travel to an unlimited number of cities over a one-month period. It`s a chance for the airline to fill empty seats during a slow time of year and to create the same buzz it generated last year when it launched the promotion for the first time. And for consumers with wanderlust, stamina, $700, or a combination of all three, it`s a continual ticket to any destination in the United States and Caribbean for 30 days. The pass is valid for flights between Sept. 7 and Oct. 6.TOP GLOBAL AIRLINEThe two biggest carriers in Latin America are merging in what analysts say would `create a regional airline giant that rivals some of the top global carriers.`In 2009, Chile-based LAN and Brazil-based TAM had combined 2009 revenues of $8.5 billion, though each would continue to operate as separate brands under a single parent company, the Financial Times reports. The transaction may generate about $400 million in annual savings, the airlines said. They will provide service to 115 destinations in 23 countries and will have 200 aircraft scheduled for future delivery.LATIN AMERICAN STOCKSLatin American stocks fell Thursday, dragged down by a retreat in shares of Brazil`s state-run oil firm Petrobras while shares in Chile firmed after data showed surprisingly strong economic growth.The MSCI Latin American stock index .MILA00000PUS lost ground for the first time in five sessions, falling 0.36 percent. Brazil`s Bovespa index .BVSP slipped 0.55 percent.
