The International Monetary Fund (IMF) team and Jamaican authorities reached a staff-level agreement on the government’s request for a precautionary and liquidity line (PLL) and the resilience and sustainability facility (RSF) with combined access of US$1.7 billion. The IMF’s executive board is expected to consider these requests in early 2023. Meanwhile, Jamaican citizens are themselves being asked to assess the move from the perspective of a changing economic paradigm for Jamaica.
Striking the right balance in protecting the vulnerable, countering inflationary pressures, and securing debt sustainability are of primary concern, and Finance Minister, Dr. Nigel Clarke suggests that a reactionary approach to shocks is not feasible if Jamaica is to maintain its growth ambitions.
The end-of-mission press release from the IMF, comments that the authorities’ response to recent shocks has been “well designed”. While describing the fiscal policy response to covid as “nimble”. Minister Clarke highlighted Jamaica’s recovery from the pandemic as evidence to support the description of the nation’s economic management.
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Reporter: Joel Crosskill
