Jamaica continues to meet its targets under the four year economic management programme with the IMF.
That’s the verdict from the Economic Programme Oversight Committee, EPOC, following its review of the performance of critical indicators in the month of July.
The government is collecting more revenue and spending less.
The EPOC co-Chairman, Richard Byles, says tax collection continues to perform above projection.
According to Mr. Byles, part of the reason for the improved collections is the implementation of a new tax regime, which saw the effective corporate tax rate move to 17-percent, down from 25-percent.
Also, profits were spread more evenly throughout the year, allowing businesses to keep up with quarterly payments.
Government spending was also well contained.
However, one area of concern is inflation, which Mr. Byles says is “pretty high” at zero-point-9 percent.
Inflation was driven mainly by food prices which have spiked because of the drought.
But low energy prices were able to somewhat compensate for those increases.