Above: Kingston (CJ Photo)
By the Caribbean Journal staff
Jamaica’s economic outlook is “improving,” according to the International Monetary Fund, which recently completed a staff mission to the Caribbean country.
The visit from May 5 to May 16 by an IMF mission was aimed at discussing the Article IV Consultation and completing the fourth review of Jamaica’s IMF-supported programme under an Extended Fund Facility.
“The economic outlook is improving,” said Jan Kees Martijn, the IMF’s mission chief for Jamaica, in a statement. “Since the start of the program in early 2013, crisis risks have receded, growth has picked up, net exports are stronger, inflation has been brought under control, and reserves are starting to recover.”
Martijn said economic activity was tentatively estimated to have expanded by 0.9 percent in the 2013/2014 fiscal year, with year-over-year growth of 1.6 percent in the first quarter of 2014.
““The program is on track. The IMF mission reached preliminary understandings with the authorities on a set of economic policies detailed in an updated Letter of Intent,” Martijn said. “These preliminary understandings are subject to approval by the IMF’s Management and Executive Board. Overall policy implementation under the program remains strong.”
The fund also said that Jamaica had met all quantitative targets for the end of March, along with indicative targets on social spending, although it missed the indicative target on tax collection.
The fund additionally said that structural reforms in Jamaica were on track, albeit with some minor delays.
If performance remains strong, the fund said, board consideration of Jamaica’s IMF-supported programme could take place in June.
IF approved, around $71 million USD would be made available to Jamaica.
“Much has been achieved in the first year of program implementation,” Martijn said. “There has been significant progress in implementing the needed reforms. A large fiscal adjustment has been put in place, achieving a primary surplus that is exceptional by international standards. “