News

IMF: Jamaica Must Address Structural Impediments to Growth

By: Caribbean Journal Staff - February 12, 2013 - 3:36 pm

Above: Kingston (CJ Photo)

By the Caribbean Journal staff

Jamaica must address “with urgency” the structural impediments to the country’s growth, including its excessive debt burden, the International Monetary Fund said following its visit to the country.

The statement by Jan Kees Martijn, who led the mission, followed a national address last night by Prime Minister Portia Simpson Miller and Finance Minister Dr Peter Phillips announcing that the country was “finalizing” a deal with the multilateral lender.

Martijn said Jamaica had seen “very low economic growth, declining productivity and reduced international competitiveness” over the last three decades.

“An important factor behind these problems has been Jamaica’s unsustainable debt burden, which has undermined confidence and elevated risks to economic stability,” he said. “Additionally, Jamaica’s high debt service has limited the government’s potential to provide the services needed to achieve sustained rates of growth and increased welfare for its citizens.”

Martijn said the IMF was continuing to work “assiduously” with Jamaican authorities on an economic programe, and had made “significant progress” in reaching understandings on strengthening Jamaica’s macroeconomic policies.

That includes achieving higher primary fiscal surpluses and structural reforms to pave the way for private-sector growth, he said.

The highlight of Simpson Miller’s address last night was that Jamaica would pursue a debt exchange offer with its creditors.

The IMF said it welcomed that move as an “important element aimed at helping to put public debt firmly on a downward trajectory.”

“A successful debt exchange will require high participation from creditors to help secure financing assurances for a Fund-supported program,” he said.

Popular Posts antigua long bay

25 Perfect Caribbean Beaches to Add to Your Summer Bucket List

There’s nothing like a Caribbean beach in summer. The crowds thin out, the winds relax, and the islands start breathing in a different way. The beaches you thought you knew feel new again— stretches of sand once packed with winter […]


Royal Caribbean’s New Cruise Ship Has a Rooftop Bar, a Waterpark and the Largest Pool at Sea

star of the seas

You step into a glass dome floating high above the ocean. To your right, divers plunge from platforms. Above, aerialists twist through light. Somewhere behind you, a DJ is spinning beside a suspended infinity pool. This isn’t a dream — […]


The 15 Best Hotels in Trinidad and Tobago, From Hidden Eco-Retreats to Luxury Towers

trinidad and tobago hotels where to stay

From Port of Spain to Tobago’s quiet coasts, these are the places to check in now No two Caribbean islands are quite like Trinidad and Tobago—and no two hotels here feel the same. This is a destination of contrast: Carnival […]


Related Posts a beach in negril

Ennismore Is Planning Its First Branded Hotels in Jamaica

Global hospitality company Ennismore is making its debut in Jamaica. In partnership with LCH Development Limited, Ennismore will introduce two of its brands across three new buildings in a large-scale project that includes both residential and hotel components. Two of […]


Lisbon to Montego Bay: Jamaica’s New European Gateway Takes Flight

jamaica world2fly

Montego Bay just got a little closer to Europe. Starting today, Wednesday, June 4, Jamaica officially welcomes a new weekly nonstop flight connecting Lisbon, Portugal with Montego Bay. Operated by World2Fly, the service marks a major milestone in Jamaica’s growing […]


Jamaica Just Got an Upgraded US Travel Advisory: “A Great Step Forward” 

seven mile beach white sand

Last year’s US Travel Advisory led to a slowdown in tourist arrivals to Jamaica. But in what’s hoped to be a major shift, the US State Department just upgraded Jamaica’s rating.  Jamaica’s travel advisory has improved from Level 3 to […]