The Economic Programme Oversight Committee (EPOC) says Jamaica is where it needs to be to achieve its penultimate targets under the International Monetary Fund’s Precautionary Stand-By Agreement.
The IMF is now on the island to complete what is Jamaica’s second to last assessment before the country is expected to graduate from a borrowing arrangement.
EPOC Chairman, Keith Duncan, says Jamaica remains on track to pass the assessment with lower than expected inflation being the only true issue. Mr. Duncan outlined where Jamaica is expected to be by the end of the next fiscal year.
According to Mr. Duncan, tax revenues continue to outperform targets and net international reserves (NIR) remain healthy at over 3 billion US dollars.
Jamaica has also achieved a Primary Surplus Balance of $107-billion, significantly exceeding both the IMF and GOJ targets, while projecting a 1.7 percent GDP growth rate for this fiscal year.
Jamaica’s Debt to GDP ratio is also projected to fall to just above 90-percent by the end of fiscal year 2019/2020. However, inflation remains below the expected inner band of 3.5 to 6 percent, which has triggered a second consultation with the IMF.
Mr. Duncan says he’s taken note of the corrective actions taken by the Bank of Jamaica to bring inflation back inline. He says both the current and previous administration should be lauded for their efforts in bringing Jamaica to this point.
Mr. Duncan says if things continue on the current trajectory, Jamaica is in the right place to stand on its own without IMF help.