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IMF gives passing grade to Jamaica's economic program

Xinhua, June 17, 2015 Adjust font size:

Jamaica's reform commitment has been strong and on track, the International Monetary Fund (IMF) said after completing the eighth review of the country's economic performance on Tuesday.

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

Half way into the program, the IMF said Jamaica has met all performance criteria except the central government primary balance criterion, which was narrowly missed.

This means the Caribbean island is eligible for another round of disbursement worth 39.8 million dollars from the IMF.

The IMF projected that Jamaica would witness a 2-percent economic growth in the 2015-16 fiscal year as a result of lower oil import costs, improved business climate and strengthened business confidence.

Lower oil prices have improved the current account and, combined with prudent monetary policy, reduced the country's inflation to its lowest point in nearly 50 years, the IMF said.

The multilateral agency, however, said the actual economic growth and job creation rely on proactive implementation of growth strategies, including lowering electricity costs, supporting small- and medium-sized enterprises, and reforming the financial sector.

The IMF said further reform to bolster tax compliance and constrain the growth of current spending is essential to Jamaica's fiscal sustainability, which calls for improvements in revenue administration and a reduction of public sector bills. Endi