THE BOUT of financial recession that has caused a gripe in the belly of the world's economies might not last as long as many experts have predicted, according to Prime Minister Bruce Golding.

"There are signs that the recession may be coming to an end sooner than most analysts had expected even up to a month ago," Golding told Parliament yesterday.

The prime minister was responding to a question from opposition backbencher, Dr Peter Phillips, on whether Government would be in a position to save the bauxite sector from complete shutdown.

Pointing to a few international signs, Golding said he was encouraged that the global recession might not be here for long.

"The housing industry in the United States, which is a significant weathervane of economic activity, showed some improvement in February - three per cent," the prime minister said. "The world is virtually waiting with bated breath to see whether or not some resolution is arrived at between the US administration and the automakers because that is another source and indicator of economic health."

Signs of recovery soon

He added: "There is a school of thought that argues that we are likely to bottom out somewhere around the middle of this year and we could see early signs of recovery towards the end of this year as against what was originally projected - sometime in the latter part of next year."

The bauxite sector has been brought to its knees as unfavourable world economic conditions have led to a decreasing demand for houses and automobiles.

Aluminium, which is made from bauxite, is a chief ingredient in both markets.

Already, Alpart has announced that it is closing its operation. Windalco is also in the process of shutting down while St Ann Bauxite Company has cut back its production.

Jamalco, the country's other bauxite company, which is owned jointly by the Government and Alcoa, has also indicated that it might close its doors should market conditions fail to improve.

Golding told Parliament that the Cabinet will be looking into establishing a special task force, to be chaired by Dr Carlton Davis, to plan for the restructuring of the plants.

daraine.luton@gleanerjm.com