The World Bank says Jamaica is poised to generate increased economic growth of two per cent and more per annum by the 2018/19 fiscal year.
The World Bank’s lead economist, Philip Schuler, says this projection is based on the government’s prudent fiscal stance and the resulting stable inflation rate; improvement in the country’s current account balance; and heightened business confidence, which is expected to generate significant new investments.
Schuler, who was speaking via video-link from the Bank’s headquarters in Washington DC, praised the government for maintaining the fiscal stance that continues to generate steady improvements in Jamaica’s economy, following protracted periods of volatility.
He noted that apart from “a couple of bad quarters” in 2014, there have been notable growth and improvement in key areas, such as the gross domestic product (GDP) and employment.
Schuler also pointed to the dramatic decline in the rate of inflation, noting that while this has increased slightly since the start of 2017, it is expected to remain within the Bank of Jamaica’s forecast range.
However, he urged the government to be mindful of the prevailing risks to which the economy remains vulnerable.
These include a debt level that remains very high, and the country’s vulnerability to natural hazards and climate change, adding that Jamaica is an open economy subject to global shocks arising from policy uncertainty.
The Bank’s Country Manager for Jamaica, Galina Sotirova, also underscored the need for further strengthening of the nation’s and economy’s resilience to natural disasters and other exogenous shocks.
