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Jamaica Overview
Jamaica's most pressing challenge is the country’s debt, which is currently estimated at 139.7% of GDP. Other critical development challenges include mitigating the medium-term effects of the global economic crisis and protecting social gains while moving towards fiscal and debt sustainability.
The country is working towards addressing short-term crisis and long-term development issues. While Jamaica had signed a 27 month Standby arrangement with the International Monetary Fund (IMF) in February 2010, the program went off track in late 2011. The country is hoping for a new IMF program, which could unlock budgetary support from development partners as well as financing from the international capital markets, which is currently unavailable to Jamaica.
The domestic debt exchange (JDX) in February 2010 was a success, recording a participation rate of 99.2% and resulted in notable change in the maturity profile of the domestic debt. The average maturity of the domestic debt after the JDX increased to 8.9 years from 4.5 years, lowering pressures on interest rates and improving the government’s ability to respond to shocks.
This initiative generated interest savings of at least 3% of GDP through the reduction in interest rates by 7% age points and 2% age points on outstanding domestic and US dollar denominated bonds, respectively.
Jamaica has lost four decades without achieving significant growth. To address this issue and build on the early successes of the IMF-led structural adjustment program, the government in March 2011 prepared a strategy to stimulate growth in the near-to-medium term.
The Jamaican economy is expected to grow at 1-2% over the medium term. Despite Jamaica’s impressive achievements, the country is confronted by serious social issues that predominantly affect youth, such as high levels of crime and violence and high unemployment.
The unemployment rate in Jamaica is at about 14.3% in 2012 with youth unemployment significantly higher. However, among Jamaica’s assets are its skilled labor force and strong social and governance indicators. However, to restore self-sustaining and job-creating growth, Jamaica will have to improve its international competitiveness and productivity, while also tackling urgent short-term economic and social needs.
For more data on Jamaica, visit World Bank's Open Data site.
Jamaica : Lending By Volume (Millions Of US Dollars)
Jamaica's most pressing challenge is the country’s debt, which is currently estimated at 139.7% of GDP. Other critical development challenges include mitigating the medium-term effects of the global economic crisis and protecting social gains while moving towards fiscal and debt sustainability.
The country is working towards addressing short-term crisis and long-term development issues. While Jamaica had signed a 27 month Standby arrangement with the International Monetary Fund (IMF) in February 2010, the program went off track in late 2011. The country is hoping for a new IMF program, which could unlock budgetary support from development partners as well as financing from the international capital markets, which is currently unavailable to Jamaica.
The domestic debt exchange (JDX) in February 2010 was a success, recording a participation rate of 99.2% and resulted in notable change in the maturity profile of the domestic debt. The average maturity of the domestic debt after the JDX increased to 8.9 years from 4.5 years, lowering pressures on interest rates and improving the government’s ability to respond to shocks.
This initiative generated interest savings of at least 3% of GDP through the reduction in interest rates by 7% age points and 2% age points on outstanding domestic and US dollar denominated bonds, respectively.
Jamaica has lost four decades without achieving significant growth. To address this issue and build on the early successes of the IMF-led structural adjustment program, the government in March 2011 prepared a strategy to stimulate growth in the near-to-medium term.
The Jamaican economy is expected to grow at 1-2% over the medium term. Despite Jamaica’s impressive achievements, the country is confronted by serious social issues that predominantly affect youth, such as high levels of crime and violence and high unemployment.
The unemployment rate in Jamaica is at about 14.3% in 2012 with youth unemployment significantly higher. However, among Jamaica’s assets are its skilled labor force and strong social and governance indicators. However, to restore self-sustaining and job-creating growth, Jamaica will have to improve its international competitiveness and productivity, while also tackling urgent short-term economic and social needs.
For more data on Jamaica, visit World Bank's Open Data site.
Jamaica : Lending By Volume (Millions Of US Dollars)