In a significant development for Jamaica’s economic outlook, Standard and Poor’s Global Ratings announced on Wednesday that it has upgraded the nation’s Long-Term Foreign and Local Currency Issuer Default Rating from ‘B+’ to ‘BB-‘ with a stable outlook.
This upgrade marks a historic achievement for Jamaica, as it is the highest credit rating the country has received from S&P since the agency began rating the nation’s sovereign debt in 1999.
The upgrade reflects S&P’s confidence in Jamaica’s improving fiscal situation, driven by a projected decline in the debt-to-GDP ratio, bolstered by modest fiscal surpluses expected over the medium-term.
While acknowledging the challenge posed by Jamaica’s high government interest burden, S&P anticipates that this burden will decrease to 17.5% of government revenues within the next fiscal year and drop to less than 15% by 2026.
One of the key factors contributing to this optimistic outlook is the expectation of continued economic growth in Jamaica.
S&P foresees sustained economic expansion, which is expected to support external balances over the next four years.
This positive economic trajectory is seen as a testament to the government’s dedication to economic recovery, especially in the wake of the severe impact of the COVID-19 pandemic.
Jamaica’s Finance Minister, Dr. Nigel Clarke, hailed the credit upgrade as a transformative development for the nation.
The Finance Minister underscored that this historic credit upgrade is tangible proof of the government’s policy priority of economic recovery yielding dividends.
It not only strengthens Jamaica’s fiscal position but also positions the country as an appealing destination for both domestic and foreign investments, fostering economic growth and employment opportunities for its citizens.
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