The Executive Board of the International Monetary Fund has confirmed that Jamaica has passed the eighth consecutive test under the four year Extended Fund Facility programme.
This development means the IMF will disburse USD$40-million to Jamaica.
In a press release issued this morning, the IMF is also lauding plans by the Simpson Miller administration to achieve sustained economic growth.
The Finance Minister, Dr. Peter Phillips announced last week that he expects a positive review from the fund today.
More good news for the country’s economy.
An executive summary posted this morning on the website of the IMF stated – all performance criteria have been met by Jamaica.
The only exception being the primary surplus balance which was narrowly missed.
According to the Washington-based multilateral, the potential for the Jamaican economy to grow in a sustained way, is gradually improving.
So too the prospect for crucial investments being secured.
The IMF statement is projecting that the country’s economy will grow by about 2% this fiscal year.
According to the IMF, this prediction is buffered by the fact that the full-year impact of lower oil prices and improvements from last year’s drought are beginning to materialize.
An improvement in the business climate is also being noted.
The Fund says reduced oil prices are expected to send inflation down faster than previously anticipated.
Full marks are also being given to the Simpson Miller-administration for implementation of its economic reform agenda, which the IMF says remains in good standing.
Finance Minister Dr. Peter Phillips and his technocrats have been consistently criticized by the parliamentary opposition for failing to craft and implement a credible plan to grow Jamaica’s economy in a significant way.
But the IMF disagrees.
In the statement today, the Washington-based multilateral said authorities in Jamaica have produced a comprehensive strategy.
It says a comprehensive outline has also been provided by the Simpson Miller administration regarding plans to tackle the need for macro-economic stability and strategic investments which promote job creation.
Meantime, the IMF says while the dangers facing the IMF programme are slowly being reduced, they remain high.
The IMF says in the absence of stronger economic activity, social support for the demanding programme may falter.
It says external financial flows could be affected by external shocks, notably higher US interest rates or changes in Petro-Caribe flows.