New report from the Center for Economic and Policy Research finds that Jamaica is running the most austere budget in the world.
"This paper looks at Jamaica’s ongoing relationship with the International Monetary Fund and multilateral development banks, its recent economic performance and the impact on development of a persistently high debt burden. It finds that after 20 years of negative average annual per capita GDP growth, Jamaica continues to be plagued by high debt and low growth.
Now in the third year of an IMF-backed economic program, Jamaica is running the most austere budget in the world, with a primary surplus of 7.5 percent of GDP. After two debt restructurings, both as preconditions to receiving IMF support, Jamaica still has a debt-to-GDP ratio of nearly 140 percent, and net flows from multilateral banks turned negative for two consecutive years. The paper finds that multilateral debt relief may be necessary for Jamaica to escape from its unsustainable debt burden, low-growth trap."
4/13/2015 04:43:39 am
In my opinion, if there are no changes within the next two years, even if they manage to even complete the IMF agreement, Jamaica will be in an even worse position because of its already struggling infrastructure. It will be a very large task to repair it and they'll still have a massive debt hanging over their heads. For them to achieve the 4-5% growth needed yearly to move forward, tourism within the region would need to increase, along with economic development igniting income generation. The enormous amount of money being spent paying off loans is exasperating the cycle of poverty and low job growth that dates back decades. I would love to hear other peoples views on Obama's recent visit and what it means for the Caribbean nation.
4/13/2015 12:33:20 pm
All the press in Jamaica (apart from folks angry about traffic) seemed very excited about the Obama visit and I didn't see any negative or questioning reports. Certainly haven't seen any mention of this report in Jamaican media which is a shame. Every year Jamaica makes cuts in medical, social service, and education spending which is the opposite of what is needed. I know Dr. LaCalle was shocked in what he saw in available medical services during his time volunteering in Morant Bay. Investment is needed not cuts in order to pay IMF loans.
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