Thu | May 25, 2017

IMF says Jamaica's investment and growth prospects are gradually improving

Published:Tuesday | June 16, 2015 | 6:21 PM
The IMF issued the statement this morning, as it announced that the Executive Board of the fund has completed its eighth review of Jamaica’s performance under the Extended Fund Facility.

Half way into the government’s Extended Fund Facility with the International Monetary Fund (IMF) says the country’s investment and growth prospects are gradually improving.

According to the IMF, growth is projected to approach two per cent this fiscal year.

The fund says growth is forecast based on the full impact of lower oil import costs, the country’s recovery from last year’s drought and the improved business climate and confidence which has been feeding economic activity.

The IMF issued the statement this morning, as it announced that the Executive Board of the fund has completed its eighth review of Jamaica’s performance under the Extended Fund Facility.

With this stamp of approval by the fund’s Executive Board, Jamaica will now have access to an additional US$39.8 million from the fund. 

Meanwhile, the IMF says the country should focus on sustainably lowering electricity costs by ensuring scheduled investments in new power plants proceed without delay.

It says improving access to credit by small and medium-sized enterprises will improve financial inclusion and support private investment.

The fund says the country's welcomed shift to a more accommodative monetary policy stance should support the expansion of private credit and economic growth.

It also says improvements in public financial management are also important to raise the efficiency of public spending.