Following an economic review, the International Monetary Fund said Jamaica’s commitment to reform remained strong and its economic performance was on track. As a result, the government will now receive $39m under the Extended Fund Facility. The IMF said Jamaica had met all quantitative performance targets including a reduction in public debt, while structural reforms were broadly met.
Jamaica implemented the IMF’s Extended Fund Facility in 2013, which is expected to pump $932m in four-years into the debt-ridden country.
‘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,’ said Mitsuhiro Furusawa, deputy managing director and acting chair.
‘Still, stepping up the pace of reforms is essential to boost growth and employment. Bold efforts are needed to reform the energy sector, improve the business climate, and advance investment in critical infrastructure.’
He said further effort was needed in improving PFM, containing public sector wage costs, strengthening tax administration and broadening the tax base.
Jamaica’s 2015/16 budget demonstrates continued fiscal discipline and will help keep public debt on a sustainable path, Furusawa said.
But he said that maintaining the momentum for fiscal consolidation over the medium term required a boost to revenue and improved public sector efficiency.
