IMF lauds Jamaica for "strong commitment" in economic reform

The International Monetary Fund (IMF) patted Jamaica on the back when concluding an economic review here on Monday, saying the country's reforming commitment remains strong and economic performance is on track.

Jamaica adopted an IMF program under the Extended Fund Facility (EFF) in 2013, according to which some 932 million U.S. dollars were expected to be injected into the debt-ridden economy in a four-year term.

After a review of Jamaica's economy, the IMF said the Caribbean island has met all quantitative targets and the structural reforms have progressed broadly on schedule. Quantitative targets include reducing public debt and bridging fiscal deficit.

"Macroeconomic performance continues to be good and economic confidence has reached a two-year peak. The decline in oil prices should help lower inflation expectations and boost demand," IMF Deputy Managing Director and Acting Chair Mitsuhiro Furusawa said.

"Still, stepping up the pace of reforms is essential to boosting growth and employment. Bold efforts are needed to reform the energy sector, improve the business climate, and advance investment in critical infrastructure," he said.

Meanwhile, the IMF deputy chief believes further efforts, including improving public financial management, containing public sector wage, strengthening tax administration and broadening tax bases, are still needed.

To meet the IMF requirements, Jamaicans have already paid its cost. Wages for public sector workers have been frozen for three years and they are expected to increase only 5 percent in the next two years.

In the recent budget debt for the 2015/2016 fiscal year, Jamaican Finance Minister Peter Phillips also proposed tax increase on cigarettes, petrol and electricity to fill a 10-billion-Jamaican-dollar (86.7 million U.S. dollars) fiscal gap.

Official statistics show the unemployment rate still stands at 14 percent. Endi