PSOJ Urges Gov’t to Remain Focused on Mission to Reduce Jamaica’s Debt

The Private Sector Organisation of Jamaica, PSOJ, is urging the government to remain focused on reducing the country’s debt and structural reforms to further boost Jamaica’s credit rating.

The call comes as international financial services company, Fitch, has affirmed Jamaica’s BB- credit rating.

While welcoming the development, the PSOJ notes the Jamaican economy is still faced with challenges.

Chevon Campbell tells us more.

Fitch Ratings Incorporated is one of the three nationally recognized statistical rating organizations designated by the U.S. Securities and Exchange Commission.

It is considered one of the “Big Three” credit rating agencies, along with Moody’s and Standard & Poor’s.

Earlier this week, it affirmed Jamaica’s BB- Credit Rating and Positive Outlook.

Jamaica achieved the rating for the first time in the country’s history, in March of last year.

It’s two notches below what is considered investment grade status – a Triple B.

The PSOJ says the reaffirmation underscores the resilience of Jamaica’s economic fundamentals and the government’s steadfast commitment to prudent fiscal and monetary policies.

It says the latest decision to maintain the rating signals continued confidence in the nation’s ability to sustain macroeconomic stability, despite challenges such as last year’s economic downturn following Hurricane Beryl.

Fitch credited the affirmation with the country’s strong fiscal management, stable policy framework and improved revenue generation, among other developments.

The PSOJ says the affirmation also reinforces that Jamaica’s economic policies remain on the right track, with great potential for Jamaican businesses.

However, the private sector organisation says more needs to be done to push the country’s credit rating further.

This includes continued focus on bringing debt levels closer to the ‘BB’ median of 55.6 percent of GDP.

It’s also calling for more structural reforms aimed at improving productivity, labour force participation, and innovation.

It says crime reduction and climate resilience measures are also pivotal in attracting more foreign direct investment and mitigating against external risks and economic disruptions.

The PSOJ says while Jamaica’s economic trajectory remains positive, challenges persist, including low productivity, government bureaucracy, and vulnerability to external shocks such as climate-related disasters.

It is encouraging continued investment in human capital development, infrastructure, and public safety reforms to address these structural weaknesses, and further enhance Jamaica’s growth potential.

Meanwhile, Finance Minister, Fayval Williams says the affirmation of Jamaica’s credit rating is an endorsement of the fiscal policy being pursued by the government.