The Private Sector Organisation of Jamaica (PSOJ) has welcomed Standard and Poors' (S&P) upgrade of Jamaica's long-term foreign- and local-currency sovereign rating from CCC plus to B minus.
The private-sector body observes that S&P attributes this upgrade to a stabilising economy and better access to new external funding from official creditors.
The credit-rating agency also indicates that the outlook is stable based on the expectation that the Government will largely meet its ambitious fiscal targets. Critically, the release also points to the continued vulnerability of the fiscal programme, especially to external shocks.
At the same time, the PSOJ said it was pleased with the progress being made under the International Monetary Fund programme, and commended the Government and the Economic Programme Oversight Committee for their commitment to, and monitoring of the programme.
"We remain steadfast in our belief that with the continued commitment to discipline, reform programmes, and support for private sector-led growth, the country will soon see the fruits of the sacrifices being made," the PSOJ added.
In a release yesterday, the PSOJ acknowledged the need for vigorous and urgent implementation of growth-inducing measures - as the reform of the planning-approval process and comprehensive tax reform - to ensure that the foundation is laid for private sector-led growth, and in order to negate the contractionary effects of the necessary fiscal reforms.
"Staying the course will, no doubt, result in even further upgrades from all the rating agencies and, as usual, the PSOJ stands ready to assist in this process," the PSOJ reasoned.