Economist and member of the Economic Programme Oversight Committee, EPOC, Ralston Hyman, is urging the government to seek a reduction in its fiscal surplus target from 7 and a half percent of GDP to 5 and a half percent under the IMF agreement.
This to accelerate economic growth.
Mr. Hyman says this will become necessary with today’s ending of Quantitative Easing in the United States and the general slowdown in global economic growth, which will make achieving higher growth in Jamaica more difficult.
Mr. Hyman says it’s critical the government approaches the IMF soon, in order to request an adjustment in the fiscal targets of the current Extended Fund Facility agreement.
In particular, he wants the government to negotiate a change in the requirement for a 7-and-a-half percent primary surplus.
Mr. Hyman says with the end of Quantitative Easing in the US today and the slowdown in several economies around the world it will be more difficult for Jamaica to achieve higher levels of growth.
Quantitative Easing, or QE, has been responsible for driving the economic recovery in the US since 2008.
In combination with historically low interest rates in the US, it has helped to pump significant amounts of liquidity into both the US and other economies, helping to spur a global recovery.