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JAMAICA | To get growth, Ja needs to reduce poverty, tackle crime and properly compensate public employees, says IMF

Featured JAMAICA | To get growth, Ja needs to reduce poverty, tackle crime and properly compensate public employees, says IMF
WASHINGTON, DC, November 4, 2019 - The Executive Board of the International Monetary Fund (IMF), says Jamaica is in need of “Supply side reforms, to promote inclusive growth and reduce poverty. To do this, they say, “requires public investments in human and physical capital, strengthened governance, greater financial inclusion, and tackling crime”.

In a statement today, the IMF's executive body said “to create fiscal space for these efforts, the government will have to strengthen fiscal institutions and modernize the compensation framework for public employees.” 

The international lending agency said “The Jamaican authorities have demonstrated an exemplary commitment to reforms under two consecutive IMF‑supported programs that have spanned the last 6 and a half years.”

The Board observed that “difficult reforms have been implemented–with considerable sacrifices by the Jamaican people–that have institutionalized fiscal discipline and led to substantial reduction in public debt, which is now on track to meet the legislated target of 60 percent of GDP by March 2026. The unemployment rate is at an all‑time low, inflation is subdued, the financial system is less vulnerable, and international reserves are comfortable.”

The IMF executive body noted that “The authorities are committed to sustain policy discipline after the conclusion of the SBA.” This they say was evidenced by “the government’s request to the Economic Programme Oversight Committee to continue monitoring its macroeconomic targets and reform commitments will support public accountability until the fiscal council becomes fully operational, while the proposed amendments to the BOJ Act will improve central bank governance and independence, allowing a greater focus on the central bank’s price stability mandate.”

“These reforms, together with a well‑functioning public bodies’ governance framework and a natural disaster financing policy, will help institutionalize the gains achieved under the Fund-supported programs,” the IMF said.

According to the IMF, “Important gains have been made in the oversight of financial institutions, and recommended that “the next steps should include enhanced group‑wide supervision of financial conglomerates, improving data and analytics, better coordination among financial regulators, an improved legislative framework for the resolution of financial intermediaries, and further strengthening of the AML/CFT framework.

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  • Countries: Jamaica

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