Jamaica’s Prime Minister Andrew Holness has welcomed the latest assessment from Fitch Ratings, which has reaffirmed Jamaica’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BB-’, with a positive outlook.
Addressing a Diaspora Townhall in Barbados last Friday, following his participation in the 48th Caribbean Community (CARICOM) Heads of Government Meeting, Holness emphasized that Jamaica’s rating reflects significant progress in economic management.
“Jamaica’s BB- ratings reflect stronger governance than the peer median,” he said. “What does that mean? That Jamaica’s management is better than countries in its peer group. It reflects significant progress with debt reduction, a sound fiscal framework, and a strong political commitment to deliver large primary surpluses—that’s the rating agency’s review of Jamaica.”
According to Fitch, Jamaica’s debt-to-GDP ratio has seen a substantial decline, falling from a peak of 135.3 percent in fiscal year 2012/13 to a projected 70.8 percent in fiscal year 2024/25. The positive outlook signals continued improvements in debt metrics and a stronger policy framework in the years ahead, including measures to mitigate climate risks.
Holness underscored the broader implications of the rating, noting that agencies such as Fitch analyze a country’s financial position along with various other economic indicators.
“Rating agencies don’t just look at our financial position. They are an aggregation of a large volume of information about a country, and they are usually very good at determining what is happening,” he stated.
The Prime Minister reiterated his administration’s commitment to fiscal discipline and responsible economic management, emphasizing the need for sustainable growth.
“The fiscal agenda is good because you are using your revenues—your own resources—to meet the needs of the people. But coming from Jamaica’s position, where the unmet needs are so great, you need to find a way to expand your earned resources very quickly,” he explained. “If you don’t, the political pressure will become overwhelming and could undo the fiscal sacrifices that have been made.”
Holness acknowledged that Jamaica’s economy has not experienced significant growth over the past five decades. However, he pointed to key investments aimed at boosting productivity, innovation, diversification, and economic complexity as part of the government’s strategy to stimulate long-term expansion.
The Fitch report reinforces confidence in Jamaica’s economic trajectory, signaling optimism for sustained financial stability and growth in the years ahead.
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