Jamaica is on track to achieve its lowest debt-to-GDP ratio in nearly 30 years, a key milestone in the country’s financial stability and economic progress.
Minister of Finance and the Public Service, Hon. Fayval Williams, highlighted this achievement while opening the Budget Debate for fiscal year 2025/26 in the House of Representatives on Tuesday (March 11).
The debt-to-GDP ratio—a measure of how much a country owes compared to the size of its economy—is projected to fall to 68.7% by the end of the 2024/25 fiscal year. This means Jamaica is borrowing less in relation to its economic growth, making it easier to manage debt repayments without sacrificing essential services. The government remains on track to reduce the ratio to 60% or less by 2027/28, a goal affirmed by Jamaica’s Independent Fiscal Commission as both realistic and sustainable.
“We have come a long way,” Minister Williams said, emphasizing Jamaica’s shift from relying on international financial aid to managing its own budget independently. “We are balanced on the ‘big-people’ bicycle with our own weight,” she noted, using a local metaphor to highlight the country’s growing financial independence.
The decline in the debt ratio signals greater economic strength, making Jamaica more attractive to investors and improving its international credit ratings. Global rating agency Fitch recently reaffirmed Jamaica’s ‘BB-’ credit rating with a Positive Outlook, citing strong governance and disciplined financial policies as key factors.
Minister Williams also pointed to other economic successes, including a record-low unemployment rate of 3.5% as of October 2024, stable inflation within the target range of 4-6%, and robust net international reserves (NIR) of US$5.58 billion as of December 31, 2024. She cautioned against calls to use these reserves for short-term spending, stressing their importance as a financial safety net in case of economic shocks.
As Jamaica continues to strengthen its economy, Minister Williams reiterated the government’s commitment to fiscal responsibility, ensuring that the hard-won gains of recent years benefit future generations.
