KINGSTON, Jamaica – The Bank of Jamaica (BOJ) says the country is experiencing an unprecedented period of economic and financial stability, which has been assisted by the success of the latest International Monetary Fund (IMF)-supported Economic Reform Program.
Dr. Wayne Robinson (File Photo)The central bank is attributing the success of the program to the high level of trust and confidence that was created in Jamaica and overseas by the building of a national consensus around the objective of sustainable debt reduction.
“Today, the IMF, World Bank, and the Inter-American Development Bank regard Jamaica very highly. We are now a prime example of a country that has transformed its macroeconomic reality. The country is building fundamental stability in its economy,” said BOJ Senior Deputy Governor Dr. Wayne Robinson.
He said Jamaica has almost halved its debt in relation to gross domestic product (GDP) from a 146.5 per cent debt to DGP ratio in 2013 to 78 per cent in 2023 and that this represents a transformation in macroeconomic fundamentals that is a necessary foundation on which to build a period of sustained financial and economic stability in Jamaica.
The BOJ Senior Deputy Governor, who spoke at the staff awards ceremony of the Electoral Commission of Jamaica (ECJ) said unemployment had been reduced from 14.5 to 6.2 per cent over the decade, and the country’s Net International Reserves (NIS) growing significantly from US$884 million, covering 11 weeks of imports in April 2013, to USD 4.2 billion – adequate for 27 weeks of imports – 10 years later.
Robinson said the country’s debt rating also illustrates the positive developments in the economy:
“In 2013 Standard and Poor’s rated Jamaica’s bonds as CCC with a negative outlook, which means that Jamaican bonds were considered to be junk. Today, that rating has improved to B+ with a stable outlook. Jamaican bonds now trade at a higher premium than those of some other countries with a B+ rating. This is an indication that people regard the financial situation in Jamaica to be very positive and very stable.”
The BOJ official said the major reasons accounting for the economic success included the broad national support that was built around the economic reform program.
“Administrations formed by both political parties agreed to press ahead with the program, the private sector was on board, the trade unions and civil society supported it. There was relative industrial calm despite workers enduring some austerity that accompanied its implementation.
“Over time, the population also owned and supported the objective of debt reduction. This created trust and confidence locally and internationally,” Robinson said, adding that the economic success also benefitted from the political stability that was maintained through the work of the ECJ and the Electoral Office of Jamaica (EOJ).
“BOJ alone cannot ensure financial stability. Political stability is one of the main prerequisites for economic and financial stability. Over the years, Jamaica’s tradition and reputation for the relatively peaceful change of political administrations are among the biggest drawing cards for investments, and multilateral loans, grants and project financing. So, we at BOJ are happy that the EOJ and ECJ have been effective and successful in their mandates.”
Robinson said there are similarities between the economic success story and the trust and confidence that the electoral system has acquired through the work of the ECJ, noting that both the ECJ and BOJ rely on the trust and confidence of the Jamaican people and their many local and international stakeholders in order to be successful.
