Jamaica works to maintain its hard-won economic stability

IMF News, February 22, 2022

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Published: February 22, 2022

Pre-pandemic stabilization: fiscal and debt outcomes

Fiscal deficit turned from 11 percent of GDP in 2009 into a 1 percent surplus in 2019.
Public debt fell from 142 percent of GDP in 2009 to 94 percent by 2019.
The government’s interest bill fell from 17 percent of GDP in 2009 to 6 percent in 2019.
Stabilization yielded a sharp decline in interest rates.

Pandemic-era fiscal adjustments

The government temporarily reduced the fiscal balance target to increase spending on health and social protection.
The government reduced the VAT rate.

Medium-term fiscal objective and intended outcomes

Government aims to reduce public debt to 60 percent of GDP by 2028.
Expected effects of achieving the 60 percent target:
- Further reduction in interest payments.
- Create scope to boost spending on education, infrastructure, and poverty reduction.
- Improve the country’s resilience to natural disasters.

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Publication date: February 22, 2022.

Jamaica Works to Maintain its Hard-Won Economic Stability — February 22, 2022.

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