February 25, 2025
Prime Minister Andrew Holness has welcomed the latest Fitch Ratings, which affirmed Jamaica’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BB-’, with the outlook remaining positive.
“Jamaica’s BB- ratings reflect stronger governance than the peer median. What does that mean? It means 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,” Holness shared.
The Prime Minister was addressing a Diaspora Townhall in Barbados on February 21, following his participation in the 48th Caribbean Community (CARICOM) Heads of Government meeting.
Fitch outlined that Jamaica’s debt to gross domestic product (GDP) has fallen to a forecast of 70.8 percent in fiscal year 2024/25 from a high of 135.3 percent of GDP in fiscal year 2012/13. The positive outlook reflects Fitch’s expectation of continued improvement in debt metrics and further strengthening of the policy framework over the next few years, including climate risk mitigants.
“Rating agencies don’t just look at our financial position. They aggregate a large volume of information about a country and are usually very good at determining what is happening,” Holness said. The government intends to keep its foot firmly planted on fiscal discipline and good fiscal management while positioning Jamaica for growth.
“The fiscal agenda is good because you are using your revenues, your own resources to address the needs of the people. However, 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. If you don’t, the political pressure will become overwhelming and could destroy the fiscal sacrifices that have been made,” he reasoned.
Prime Minister Holness admitted that for the last 50 years, Jamaica’s economy has not grown significantly. He shared that growth is a function of productivity, innovation, diversification, and complexity, noting that investments are being made by the government to address all four areas.
Source: (Caribbean News Global)
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