IMF gives positive first review of Jamaica's two arrangements with the Fund

A team from the International Monetary Fund (IMF) says the outlook for Jamaica points towards continued growth, with inflation expected to return to the midpoint of the central bank’s target range by year end.

The IMF noted that over the past few years, Jamaica has been buffeted by a difficult global environment but “entrenched macroeconomic stability and sound policy frameworks are helping the country to navigate this complex global environment.”

The economy has been recovering strongly and growth for FY2022/23 is estimated at 4.3 per cent, it said. I added that the public debt has continued to fall, and the financial system remains well capitalised and liquid.

The team led by Esteban Vesperoni held meetings with the Jamaican authorities from June 12 to 16 to review the implementation of reforms under the Precautionary and Liquidity Line (PLL) and the Resilience and Sustainability Facility (RSF) Arrangement.

At the end of the meetings Vesperoni said the Jamaican authorities have made good progress in implementing their policy agenda under the PLL.

“They overperformed on indicative targets and met structural benchmarks, supporting efforts to bring the AML/CFT (anti-money laundering/ combating the financing of terrorism) framework to international best practice and improve data adequacy. The fiscal balance recorded an overall surplus in FY2022/23. International reserves continued to increase over the last fiscal year, strengthening external buffers, in line with objectives in the authorities’ programme,” he said.

Turning to the authorities’ policy agenda under the RSF, Vesperoni said “they are completing reform measures that will introduce important climate-related elements in the fiscal framework and foster energy efficiency. The completion of these reforms will make available about US$255 million under the arrangement.”

The IMF’s Executive Board is expected to consider the reviews in August.

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