The International Monetary Fund, IMF, on Thursday approved over US$1.7 billion to help protect Jamaica against inflation and climate change, over a 2 year period.

In a statement, the IMF announced that its executive board, approved Jamaica’s request, for US$968 million, under the precautionary and liquidity line, PLL, arrangement as well as US$764 million, under the resilience and sustainability facility, RSF.

The PLL will provide insurance against risks from higher commodity prices, a global slowdown, tighter-than-envisaged global financial conditions, and new Covid outbreaks.

While the RSF, will strengthen physical and fiscal resilience to climate change, advance decarbonization of the economy, manage transition risks, and catalyse funding for climate priorities from other official lenders and the private sector.

The IMF said although the Covid-19 pandemic struck a blow to the country’s critical tourism industry, tourism has bounced back.

It noted that public debt is also declining and high inflation has been receding since mid-2022.

It said real g-d-p growth for 2022 is expected at around 4 percent.

The IMF said its forecast is in line with those reported in February, following a visit by the executive board.

While the IMF praised Jamaica’s fiscal policies and has forecast that Jamaican inflation should fall back to the central bank’s target by the end of this year, it said the economy is facing significant external risks.

The IMF also noted that the authorities’ response to recent shocks has been well designed.

It said these policies have struck the right balance in responding to shocks, protecting the vulnerable, countering inflationary pressures, and further securing debt sustainability.

It added that the authorities continue to enhance policy frameworks.