Keith Duncan wants the Jamaican Government to fast-track pension reform, amid other measures to stimulate the economy, to shield against a global slowdown.

“I am not saying that Jamaica will enter into a recession. I am highlighting that we are seeing a downturn in economies globally, which could spill over into Jamaica,” the co-chair of the Economic Programme Oversight Committee (EPOC) told the Financial Gleaner in an interview on Tuesday.

His comments on the matter were made initially on Monday at an EXIM Bank strategy session for the board and management. Duncan is also the CEO of JMMB Group, a financial services conglomerate that operates businesses in Jamaica, Trinidad & Tobago, and Dominican Republic.

The Jamaican economy is expected to grow 1.3 per cent to 1.5 per cent for fiscal year 2019-20, which is a percentage lower than projected, because of contraction in agriculture.

As an offset, Duncan wants the authorities to boost the scope of pension fund investments, retrain people, and deal with crime and corruption, which cost the country some “3.0 per cent of gross domestic product”.

Private pension funds hold $600 billion of assets, but how they invest those funds are heavily regulated, with caps on ­different asset classes.

Duncan wants more focus on increasing domestic investments, ­including ­venture-capital projects, which has a limit of 5 per cent of portfolios.

“The venture-capital market is very underdeveloped, so this is a good start. As this asset class matures, there could be upward revisions,” he said.

In July, the International Monetary Fund lowered the global growth forecast because of fallouts from the trade war between China and the United States, and the uncertainties surrounding the United Kingdom’s exit from the European Union, referred to as Brexit.

The IMF projected global growth of 3.2 per cent in 2019, and 3.5 per cent in 2020, which is 0.1 percentage point lower than earlier forecasts for both years.

Duncan said the external events could lead to slowdowns in Jamaica’s tourism and mining sectors.

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