Jamaica Fails to Meet IMF Target

Jamaica has failed to meet its IMF primary surplus target.

This is the first time the country has failed to meet an IMF target under the current Extended Fund Facility agreement.

The shortfall was $4.1 billion. 

Jamaica recorded $117.2 billion, missing the target set by the IMF of $121.3 billion.

During an Economic Programme Oversight Committee (EPOC) meeting this morning co-chairman Richard Byles said “the IMF team is currently in Jamaica for the eighth quarterly review.”

“They will have to make a judgement on how to treat the primary surplus shortfall,” he contended.

“Apart from any management underperformance in respect of tax compliance and late implementation, we believe they would need to ask themselves the following questions: ‘Is the performance credible given the impact of much lower inflation and the drought-caused slower GDP growth?’ and ‘Has the country continued to show commitment and effort toward achieving this aggressive target?’” Byles reasoned.

If EPOC’s answer to both questions is “yes”, Jamaica should be granted a waiver on the performance of the primary surplus, Byles said.

Source: Loop Jamaica

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