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IMF gives mixed review of Jamaica’s economic progress
The International Monetary Fund (IMF) says although Jamaica has made some progress in its economic situation, there is still a lot more work to be done.
Representatives of the IMF in Jamaica, told RJR News that in assessing the past year the government has been putting in certain changes it thinks will chart the way for the proper implementation of the stipulations under the IMF agreement.
According to Division chief for the IMF in the Caribbean, Trevor Alleyne there have been more than expected positives in some areas.
“The financial system has proven to be resilient, there was an initial boost of confidence that has resulted in an appreciation of the currency, reduction in risk premium and the financial system has proven to be largely resilient to serious risk. One year into the programme, those things have proven to be much better than we had originally envisaged,” Mr. Alleyne said.
However Mr. Alleyne says there are still some areas of concern.
“The issue of economic activity and a recovery in growth has been less positive than we had initially imagined, or we had initially projected and we would have seen a resumption of growth towards the latter part of the fiscal year which would mean the October to December quarter, it didn’t happen and by all measure, economic activity remains weak,” he said.
He said in addition, growth remains flat or is in the negative and unemployment rates remain high.
Mr. Alleyne says this is disappointing as these are areas in which the agency had expected some improvements as they are critical for the success of the IMF programme in Jamaica.
However, he said no rush pronouncements will be made on the success of the government as the agency is giving the Golding administration more time to put into motion some of the fiscal changes that have so far been made.
The International Monetary Fund (IMF) says although Jamaica has made some progress in its economic situation, there is still a lot more work to be done.
Representatives of the IMF in Jamaica, told RJR News that in assessing the past year the government has been putting in certain changes it thinks will chart the way for the proper implementation of the stipulations under the IMF agreement.
According to Division chief for the IMF in the Caribbean, Trevor Alleyne there have been more than expected positives in some areas.
“The financial system has proven to be resilient, there was an initial boost of confidence that has resulted in an appreciation of the currency, reduction in risk premium and the financial system has proven to be largely resilient to serious risk. One year into the programme, those things have proven to be much better than we had originally envisaged,” Mr. Alleyne said.
However Mr. Alleyne says there are still some areas of concern.
“The issue of economic activity and a recovery in growth has been less positive than we had initially imagined, or we had initially projected and we would have seen a resumption of growth towards the latter part of the fiscal year which would mean the October to December quarter, it didn’t happen and by all measure, economic activity remains weak,” he said.
He said in addition, growth remains flat or is in the negative and unemployment rates remain high.
Mr. Alleyne says this is disappointing as these are areas in which the agency had expected some improvements as they are critical for the success of the IMF programme in Jamaica.
However, he said no rush pronouncements will be made on the success of the government as the agency is giving the Golding administration more time to put into motion some of the fiscal changes that have so far been made.
