July 21, 2023
According to Caribbean News Global, the Bank of Jamaica (BOJ) Senior Deputy Governor was delivering an address on behalf of BOJ Governor Richard Byles on July 12, 2023 where it was reported that “Jamaica is experiencing an unprecedented period of economic and financial stability, which has been assisted by the success of the latest International Monetary Fund (IMF)-supported Economic Reform Programme.”
It was added that the success of the programme is due to the high level of trust and confidence that was created in Jamaica and overseas by the building of a national consensus around the objective of sustainable debt reduction.
BOJ Senior Deputy Governor, Dr Wayne Robinson, alluded, “Today, the IMF, World Bank, and the Inter-American Development Bank regard Jamaica very highly. We are now a prime example of a country that has transformed its macroeconomic reality. The country is building fundamental stability in its economy.”
Notably, Jamaica has almost halved its debt in relation to gross domestic product (GDP) from a 146.5% debt to DGP ratio in 2013 to 78% in 2023, it was highlighted that “this represents a transformation in macroeconomic fundamentals that is a necessary foundation on which to build a period of sustained financial and economic stability in Jamaica.”
As further evidence of the economic turnaround in the country, “unemployment being reduced from 14.5% to 6.2% over the decade, and the country’s Net International Reserves growing significantly from US$884 million, covering 11 weeks of imports in April 2013, to USD 4.2 billion – adequate for 27 weeks of imports – 10 years later”, was mentioned by Dr. Robinson.
Consequently, the BOJ Senior Deputy Governor detailed the country’s debt rating also illustrates the positive developments in the economy: “In 2013 Standard and Poor’s rated Jamaica’s bonds as CCC with a negative outlook, which means that Jamaican bonds were considered to be junk. Today, that rating has improved to B+ with a stable outlook. Jamaican bonds now trade at a higher premium than those of some other countries with a B+ rating. This is an indication that people regard the financial situation in Jamaica to be very positive and very stable,” he explained. He also expressed the view that the major reasons accounting for the economic success included the broad national support that was built around the economic reform programme.
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