The Executive Board of the International Monetary Fund (IMF) has completed its second review of Jamaica’s performance under the Stand-By Arrangement (SBA).
The review was completed yesterday.
Following the Executive Board’s discussion today, IMF Deputy Managing Director, Tao Zhang, said the authorities’ commitment to their Fund-supported program remains strong more than four years after embarking on difficult economic reforms.
Program performance is on track and macroeconomic stability is entrenched, with stronger fiscal and external positions, subdued inflation, and employment at historic highs.
Nevertheless, he says vulnerability to weather-related shocks continues to pose important challenges to Jamaica’s growth performance.
Against this backdrop, the IMF says supply-side reforms, including enhancing resilience to weather swings, must be accelerated to deliver better growth and job outcomes, reduce poverty, and improve living standards, while sustaining macroeconomic stability.
Zhang adds that concluding the ongoing wage negotiations is necessary for budget certainty.