The International Monetary Fund (IMF) has praised Jamaica’s strong economic management and resilience, while cautioning that global uncertainty and climate risks still pose serious challenges.
The findings came after the IMF concluded its 2025 Article IV Consultation with Jamaica, following a series of meetings held from April 30 to May 7.
Led by Mauricio Villafuerte, the IMF team noted that Jamaica has made impressive progress over the past decade — slashing public debt, keeping inflation in check, and strengthening its external finances. The country has also maintained economic stability despite recent setbacks caused by Hurricane Beryl and Tropical Storm Rafael, which damaged agriculture, infrastructure, and tourism.
Still, the IMF says the economy is on track to recover. Unemployment has dropped to a record low of 3.7 percent, and inflation remains within the Bank of Jamaica’s 4-6 percent target range. Public debt is projected to fall to 65 percent of GDP this year — the lowest level in 25 years.
While the outlook remains positive, the IMF warned that Jamaica remains vulnerable to external shocks, including slowing global growth, tighter financial conditions, trade disruptions, and more frequent extreme weather events.
The IMF welcomed Jamaica’s recent reforms aimed at improving transparency, reducing crime, and boosting employment services. It also acknowledged progress in tax compliance, public sector pay reform, and financial sector oversight. New institutions like the Fiscal Commission are helping to keep government spending aligned with long-term goals.
However, the IMF urged caution on managing the public wage bill and recommended more efficient use of public funds. It also encouraged the government to deepen foreign exchange market reforms, strengthen fiscal safeguards, and pass laws to further protect financial stability.
Looking ahead, the IMF said continued focus on reducing crime, improving infrastructure, education, and labor market services will be key to unlocking Jamaica’s full economic potential.
The IMF team thanked the Jamaican authorities, private sector, and civil society groups for their cooperation and productive discussions.
