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ECLAC projects 1.1 per cent growth for Jamaica

Published:Thursday | July 30, 2015 | 7:47 PM

The Economic Commission for Latin America and the Caribbean (ECLAC) is projecting that the Jamaican economy will grow by 1.1 per cent in 2015.

It says it’s expecting an improvement in bauxite exports, higher tourism receipts, continued flows of remittances, which boost domestic demand, and an upturn in agriculture.

The projection for Jamaica comes even as ECLAC said countries in Latin America and the Caribbean will grow 0.5 per cent on average in 2015.

The Jamaican Government has projected 1.6 per cent growth this fiscal year, while the International Monetary Fund has projected 2 per cent growth.

Meanwhile, ECLAC says the key challenge to the Jamaican economy continues to be the heavy debt burden, currently equivalent to 132.5 per cent of gross domestic product (GDP).

It says the debt is likely to remain in excess of 100 per cent of GDP until 2020.

ECLAC says the debt situation will require continued monitoring of expenditure and increases in tax revenue.