Jamaica: 2025 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, June 25, 2025
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Bibliographic details
- Published: June 25, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229015363.002
Key findings and overview
- Over the last decade, Jamaica has established an enviable track record of investing in institutions and prioritizing macroeconomic stability which allowed it meet recent shocks and natural disasters in an agile, prudent, and growth-supportive manner.
- The continued reforms will increase resilience to future shocks and natural disasters.
- Current policies have strengthened Jamaica’s resilience to adverse shocks (as evidenced by the impact of the Beryl/Raphael storms).
- Low productivity resulting from the misallocation of resources is amplified by structural impediments including high crime, barriers to competition, poor educational outcomes, inadequate infrastructure, and barriers to trade.
Growth challenges and required approach
- A multipronged approach is required to overcome supply-side constraints to growth.
- The multipronged approach should combine continued institutional reforms with targeted measures to address structural impediments that limit productivity.
Policy reforms and recommendations
- Fiscal policy:
- Adoption of an operational debt anchor.
- Monetary policy:
- Improving effectiveness of monetary transmission mechanism.
- Financial sector and markets:
- Deepening and developing of foreign exchange markets.
- Advancing the reforms for financial stability.
- Overall:
- Policy reforms to bolster the credibility and efficiency of Jamaica’s fiscal and monetary policy frameworks, strengthen financial stability, and support growth would deepen resilience to adverse shocks.
Evidence and emphasis
- The report emphasizes that the combination of institutional investment and macroeconomic stability enabled Jamaica to respond to recent shocks and natural disasters in an agile, prudent, and growth-supportive manner.
- Reforms aimed at fiscal anchors, monetary transmission, FX market development, and financial stability are presented as central to deepening resilience and supporting growth.
International Monetary Fund. Jamaica: 2025 Article IV Consultation-Press Release; and Staff Report
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