Jamaica has received approval from the International Monetary Fund (IMF) for its 7th review, despite missing the “indicative” target on tax revenue.

An IMF mission visited Jamaica from 16 February to Wednesday to conduct the 7th review of Jamaica’s performance under the Extended Fund Facility (EFF). As part of the review, the IMF consulted with government officials, technical staff and key stakeholders, including the private sector, according to a release from the Ministry of Finance. A news conference on Jamaica’s performance was held at the Ministry of Finance in Kingston on Wednesday.

“Given Jamaica’s proven record of performance to date, which has been set out in a Letter of Intent for submission to the IMF Board in March, it is anticipated that the IMF Board will approve the 7th review under the EFF and thereby allow for the release of SDR28.32 million (US$40 million) to Jamaica,” the release said.

The IMF team agreed. “The IMF’s Executive Board is expected to consider the seventh review of Jamaica’s IMF-supported programme under the EFF in March. Upon approval, SDR 28.32 million (about US$40 million) would be made available to Jamaica,” IMF Mission Chief Jan Kees Martijn said in an IMF news release.

“The programme is on track and policy implementation remains strong,” Martijn said.

The mission head was positive about the future of Jamaica’s economy, with inflation of about five per cent and economic growth of about two per cent for the fiscal year 2015/16.

“The external position is strengthening, net international reserves remain well above programme goals, and the current account balance is projected to improve through this year and next,” Martijn said in the IMF release.

Meanwhile, the Ministry release said “All quantitative performance targets and structural benchmarks for the December 2014 quarter were met; however, the indicative target on tax revenue was narrowly missed.

“The Government remains committed to a competitive exchange rate and the net international reserves has been maintained at an acceptable level. Additionally, employment is increasing. Notably, the decline in international oil prices has also lent support to an otherwise strengthening macroeconomic environment.”

Drought was blamed for the fall-off in national growth. “The growth momentum observed in the first two quarters of 2014 was disrupted by the severe drought experienced last year, resulting in a sharp downward revision to the outlook for this fiscal year. The drought not only impacted our positive growth trajectory but brought to the fore the need for Jamaica to pay closer attention to the impact of climate change given the fragility of our economic recovery,” the Ministry release said.

Both the Fund Team and the GOJ are projecting that the economy will “rebound” in the 2015/16 fiscal year, the release said.

“The Government of Jamaica remains committed to the Programme such that investor confidence can be further strengthened, leading to more robust growth and employment. Consequently, the 2015/16 budget recently tabled in Parliament is consistent with the objectives and targets of the Programme,” the Government release said.