Positive signs for Jamaican economy

By the Caribbean Journal staff

Jamaica’s economy is showing some positive signs, according to the International Monetary Fund, which recently concluded a mission to the country.

“A gradual economic recovery is underway.” said IMF Mission Chief Uma Ramakrishnan, who led an IMF delegation in Jamaica from Aug. 12-21. “ The growth outlook is improving, although the drought is hampering agricultural recovery for the second year in a row.”

Growth is now projected at 1.4 percent in 2015-2016, she said, while unemployment declined to 13.2 percent in April, driven by “strong employment growth in tourism and in the business process outsourcing sector.”

Inflation remained at a historic low of 4 percent in July, despite higher food prices resulting from a regional drought.

The purpose of the visit was to conduct discussions on the ninth review of Jamaica’s IMF-supported program under an Extended Fund Facility.

“Program implementation remains strong,” she said. “All quantitative performance targets through end-June were met, with tax revenues exceeding expectations. Structural reforms are also broadly on track.”