Mon | Dec 18, 2017

IMF doesn't agree with local officials on growth projections

Published:Friday | September 15, 2017 | 9:51 AMDebbie-Ann Wright
Ramakrishnan

The International Monetary Fund (IMF) has disagreed with local officials that Jamaica will be able to achieve two per cent or more growth this fiscal year.

At a press conference last evening, the leader of the IMF’s review team which visited Jamaica this week, Uma Ramakrishnan, said economic activity for fiscal year 2017/2018 is projected to expand by 1.6 per cent.

She says this is slightly lower than anticipated, as flooding adversely impacted agriculture.

However, she says the Jamaican economy is rebounding.

She says over the medium-term, economic expansion is expected to be around two and a half to three per cent, as sustained reforms yield higher investment and productivity dividends.

Late last month, the Planning Institute of Jamaica maintained its projection for the economy to record two to three per cent Gross Domestic Product (GDP) growth this fiscal year although the economy expanded less than one per cent in the last two quarters.

PIOJ Director General, Dr Wayne Henry, said the expectation is for the economy to expand at a faster pace in the latter quarters of the fiscal year.

He said that is expected to push overall GDP growth to the projected out-turn of between two and three per cent.

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