Regardless of the bump that Jamaica experienced this year reaching an all-time low where its currency is concerned, the International Monetary Fund has given its prediction that the country’s economy is to grow more than 8 per cent this year.
Even though the IMF gave its forecast of successful economic growth for Jamaica, the financial institution highlighted that the possibilities of disruptions in trade, tourism and capital flow due to the Covid-19 pandemic are very much real.
The information was presented by the organization after the 2021 Article IV Mission where they also said that Tourism was one of the main industries of growth, recording over 70 per cent even when battered by the waves of Covid-19 this year. IMF also indicated that other sectors have also shown much growth as well.
PM Holness also took to Twitter to share the good news.
The financial institution identified that there had been an improvement to the Country’s GDP, as the second quarter of the year recorded 14.2% higher than the first. For the financial year 2021/2022, an amount of 8 and a quarter per cent is said to be the amount projected for growth while for the year 2022/23 a moderation of 3.5 per cent is being expected to be moderated.
The information recorded for the year was at an amount of 8.2 per cent as of September, which surpassed the Central Bank’s goal of 4-6 per cent.
In rebuilding the economy, in this time of the Covid-19 pandemic recovery, the IMF has encouraged Jamaica to start rebuilding buffers and reestablish debt reduction strategies considering risks to debt sustainability and external shocks.
Another thing discussed by The International Monetary Fund is for Jamaica to implement policy strategies that will appropriately impact growth, and help to reduce crime and violence as the organization has given their opinion that it is an area that the country needs to improve on.
Overall the financial institution has said that the Country has been improving since the last decade before the pandemic in areas such as GDP, Debt and other areas and have outlined a goal for Jamaica to have their debt reduced to 60 per cent of their Gross Domestic Product by the financial year 2027 and 2028.