MONTEGO BAY — The Inter-America Development Bank (IDB) Country Economist for Jamaica Henry Mooney says the country’s macroeconomic indicators are moving in the right direction and, as such, the operating conditions for the private sector is right.

“There has never been a better time to be operating in the private sector in Jamaica; at least, not in the last 20 years,” stated an optimistic Mooney, who added, “I hope you are seeing this yourself — but certainly, statistically, in terms of what we are seeing in terms of the macroeconomic backdrop. So that should give you a lot of hope that should motivate you and sensitise you to continue to develop your business, because that’s one of the key issues without which you wouldn’t be able to make much progress.”

Mooney noted that economists are normally seen as a dismal scientists. However, he said since moving to Jamaica he is now able to refer to himself as an optimistic scientist.

The country economist representative noted that the country is currently at an extraordinary time in terms of its potential. As such, he said the country is now in a better position to do things that it wasn’t able to do over the past two to three decades. He said this was made possible through extraordinary efforts undertaken by the Government over the course of the past five to six years to establish macro-stability.

A growth optimism and uncertainty chart presented by Mooney for the region has projected Jamaica as the only country in the region that is expected to see a marginal gross domestic droduct (GDP) of under three per cent over a five-year period, starting in 2017.

The other countries are The Bahamas, Barbados, and Trinidad and Tobago.

Mooney, who was addressing a Business Process Industry Association of Jamaica and Contact Centre Business Incubator President’s Forum held at the Usain Bolt’s Track and Records in Montego Bay on Thursday, said this projection for Jamaica is relatively flat.

However, Mooney said tertiary sectors such as the business process outsourcing (BPO) can assist with the country’s growth.

“You have a very important contribution to make in the future of this country, because really it is a sector like yours, the tertiary sector, that are the highest value added. That has the ability to make the most impact in terms of growth trajectory,” Mooney stated.

As it relates to debt, the country representative noted that high debt payment had constrained the Government’s ability to invest in infrastructure, education, and health.

Mooney pointed out that while government debt is on the reduction from being one of highest in the world 10 years ago, this is expected to further plummet — and fast.

“We are now projecting debt will fall faster and further than almost any other country in the region, and perhaps in the world,” stated Mooney, who noted that “this was a very good story.

“It was done the right way through various focus performs institutions and policies.”

Mooney also said that the Government is saving more than it is spending. The country representative said while this provides a fiscal surplus, there is a problem. He said this constrains the Government’s ability to be the primary investor in infrastructure, and as such this is an opportunity for the private sector to fill the void.

“It means that industry like yours (BPO) will have a very important role to play in terms of organising, funding and activating education investment in physical infrastructure. And that is how it works in other countries. So, institutions like ours are looking to you (BPOs) to fill that gap as you go forward and develop,” encouraged Mooney.

And the IDB country representative has listed productivity, finance and business environment as some constraining factors to growth in the country.

He said productivity, which is key to all countries that have grown, is one of the worst-performing areas for Jamaica.

“Unfortunately, historically, this has been one of the worst areas for Jamaica, and that’s for a number of reasons. The private sector hasn’t been operating in sectors that are conducive to increasing productivity. And it is also because the Government has constrained that by preventing access to capital. For example, not making investment in the right place,” Mooney argued.

Mooney added that the lack of a properly trained workforce has also contributed to the issue of productivity.

High electricity cost, property registration, high level of taxes, enforcing of contracts informal competition, and crime were also listed as some issues facing the country and businesses.