The World Bank’s chief economist for Latin America and the Caribbean, William Maloney, forecasts a resilient path for Jamaica’s economy.
Anticipated to grow by two per cent this year, the country’s economic momentum is expected to maintain a steady pace, projecting a growth rate of 1.6 per cent for the subsequent years until 2026.
Effective debt management spurs confidence
Jamaica’s remarkable control over its external debt has garnered commendation from Maloney.
He lauds the consensus mechanism implemented years ago, which orchestrated collaboration among major interest groups.
This concerted effort aimed at managing fiscal deficits and debt levels has yielded tangible results, with debt levels consistently declining.
Maloney asserts his belief in the strategy’s long-term potential to fuel dynamic growth and alleviate poverty.
Holness’ optimism: Debt-to-GDP ratio on a downward Trajectory
Prime Minister Andrew Holness recently expressed confidence in Jamaica’s fiscal trajectory.
He asserts that the debt-to-GDP ratio is poised to drop to 74 per cent by March 2024, marking a significant achievement below pre-pandemic levels and the lowest in 25 years.
Regional insights: Barbados and belize
Beyond Jamaica, Maloney sheds light on the economic outlook for other Caribbean nations. Barbados is slated to experience growth of 3.7 per cent this year, with projections tapering to 2.3 per cent by 2026.
Similarly, Belize anticipates economic expansion of 3.5 per cent in the near term, with growth moderating to 2.5 per cent in subsequent years.
Maloney underscores Belize’s reliance on tourism and the imperative for diversification in small economies.
Guyana’s oil wealth: A potential game-changer
Addressing Guyana’s burgeoning oil industry, Maloney emphasizes the need for equitable distribution of oil wealth.
He highlights the importance of leveraging revenues to enhance human capital and foster economic diversification.
Additionally, he stresses the significance of robust institutions to navigate competing demands and ensure transparent allocation of resources.
Building strong institutions
While the World Bank’s direct involvement in the oil sector remains limited, Maloney underscores the institution’s role in advising on institutional development.
He emphasizes the criticality of building strong governance structures to manage oil revenues effectively and foster sustainable economic growth.
