IMF Commends Jamaica’s Economic Progress

The Executive Board of the International Monetary Fund (IMF) has commended the government as it approved the second review of Jamaica’s ongoing arrangements with the organisation.

During the conclusion of the Article Five consultation and Second Reviews Under the Precautionary and Liquidity Line and the Resilience and Sustainability Facility Arrangements on Thursday, the IMF’s leadership highlighted Jamaica’s significant strides in various economic areas.

Over recent years, Jamaica has effectively reduced its public debt, stabilised inflation, and bolstered its external position.

The IMF acknowledges Jamaica’s consistent efforts in investing in institutions and prioritising macroeconomic stability.

This proactive approach enabled Jamaica to respond prudently, swiftly, and in a growth-supportive manner to recent global economic shocks.

Across key economic indicators such as growth, unemployment, and inflation, Jamaica’s trajectory is deemed favourable by the IMF.

The outlook suggests sustained growth, with inflation expected to remain within the target range set by the Bank of Jamaica.

This positive outlook is underpinned by sound external and fiscal positions, along with stability in the financial system.

Despite these optimistic projections, the IMF cautions against lingering global risks.

Factors such as heightened global risk aversion, potential conflicts, and climate-related events could pose challenges to Jamaica’s economic stability.

However, the IMF emphasises the Jamaican government’s commitment to implementing sound macroeconomic policies, supported by robust policy frameworks.

With improving revenues and prudent fiscal policies, the Fund is of the view that Jamaica is well-positioned to navigate economic shocks, mitigate inflationary pressures, and ensure debt sustainability.

Through the Precautionary and Liquidity Line and Resilience and Sustainability Facility, Jamaica has access to a combined US $1.7 billion to address significant economic disruptions. 

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