Latest IMF report says Jamaica’s economy is recovering strongly

The International Monetary Fund (IMF) has indicated that Jamaica is recovering strongly from the impact of shocks such as the Russia/Ukraine war and the coronavirus pandemic.


The executive board of the IMF concluded its article 4 consultation with Jamaica, and released its report today.


It said over the past few years, Jamaica has been buffeted by a difficult global environment, from COVID-19, the war in Ukraine, and the ongoing tightening of global financial conditions.


The IMF noted that with support from sound policy frameworks and policies prioritizing macro-economic stability, the Jamaican economy is now recovering strongly.


It said that as COVID-19 waned, stopover flight arrivals rebounded to pre-crisis levels, and 2022 real GDP growth is expected to be around 4%.


Additionally, pushed by global factors, in particular, the impact of the war in Ukraine on commodity prices, inflation has risen above the central bank’s target band, but is expected to decline during the course of 2023.


It said high commodity prices have resulted in an increase in the current account deficit, however, the country’s international reserves remain at healthy levels.


Nonetheless, global risks remain high.


The IMF said the war in Ukraine may push commodity prices higher, a stronger-than-envisaged tightening of global financial conditions may curb capital flows and reduce remittances, and new COVID-19 variants could disrupt tourism and trade.







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