Economists pouring over the Estimate of Expenditures tabled recently in Parliament by Finance Minister Dr Nigel Clarke, have stressed that the Government will need to use priority spending to drive the much-needed growth in the economy.
The Planning Institute of Jamaica informed the country last week that the out-turn for economic growth for the 2018 calendar year was 1.8 per cent, the highest in a decade.
But for economic observers, it is still not enough, and they believe that there is potential for growth above two per cent.
At the latest edition of ‘The Exchange’, held at The University of the West Indies Regional Headquarters on Wednesday, participants in the forum shared their views on what will be needed to further the expansion of economic growth.
“There is the Credit Enhancement Fund related especially to MSMEs (Micro, Small & Medium Enterprises) which, they say, is the engine of growth. There is a provision of $400 million to help with the financing of MSMEs. Is there sufficient (money)? Clearly not, but there is some small provisions to try an address the issue of how to stimulate the MSME sector, which all of us say is the area of expectation where the growth will come from,” Errol Gregory, an economist, said.
Financial consultant Chris Stokes said getting those results does not necessarily lie in spending more money.
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