The International Monetary Fund (IMF) is urging the Government to put more focus on supply-side reforms in its thrust to move the country away from lacklusture growth levels.
IMF’s executive board completed the fourth review of Jamaica’s performance under the programme supported by the Stand-By Arrangement (SBA) on November 5.
While it praised the authorities on Jamaica’s impressive track record over the past five years, to include reduced public debt and improving social and unemployment indicators, IMF highlighted that growth in the country remains subdued.
“Against this backdrop, supply-side reforms to facilitate private sector investment are needed to achieve higher, sustained growth and job creation,” it said.
The shift to supply-side reform is expected to enhance productivity of Jamaica through improved quality and quantity of the country’s land, labour, capital, and businesses. Gross domestic product (GDP) of Jamaica is expected to average 1.4 per cent at the end of the 2018/19 fiscal year, moving from 0.9 per cent in the year 2017/18.
Projections are that GDP will move to 2.2 per cent in the fiscal year 2022/23.
In addressing impediments that constrain access to finance for private sector investment, IMF charged that the financial sector should be further strengthened in line with the recommendations from the accompanying ‘Financial Sector Stability Assessment’.
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