KINGSTON, Jamaica – Standard & Poor’s (S&P) Global Ratings today affirmed the Government of Jamaica’s long-term foreign and local currency issuer default rating at B+, with the outlook remaining negative.

The S&P ratings outcome accounted for the economic and financial realities faced by the country, arising from the COVID-19 pandemic and the actions undertaken by the Government of Jamaica to minimise the effects, the Ministry of Finance said.

“The onset of the pandemic caused a disruption in some productive

sectors, particularly tourism, which was a contributory factor to the contraction in the country’s GDP.

“It also disrupted the trend of fiscal surpluses realised over the past three years, with Jamaica programmed to post a fiscal deficit this year. However, despite the adverse outcomes, S&P in their analysis expects the country to return to fiscal surpluses in the short-term due to the Government’s demonstrated commitment to prudent fiscal policy Management,” it added.

The ministry said S&P views the Jamaican economy as relatively well diversified and expects a strong rebound in growth in 2021, driven largely by the re-opening of the tourism sector. The pace, however, will depend on the “timing of the outbreak peak in Jamaica and key visitors’ countries”.

S&P anticipates the rebound will commence in 2021 but expects full recovery in financial year 2022/2023.

Portfolio minister Dr Nigel Clarke, in commenting on the rating action, said, “The affirmation of Jamaica’s credit rating at B+ is a sign of confidence in Jamaica’s future. We entered the pandemic with significant fiscal buffers, which provided us with the flexibility to absorb and respond to the crisis without affecting medium term economic prospects. As such, as S&P forecasts, Jamaica is poised to return to economic growth in fiscal year 2021/22 although achieving pre-COVID levels of economic output will occur in the medium term.”

He added: “The fact that we are continuing to strengthen, build and entrench economic institutions in the middle of the pandemic, through modernising our central bank and making it independent, launching a public investment map and tabling the Bill to establish a independent fiscal commission, is a real show of strength. These institutions will enhance transparency and accountability in the implementation of fiscal and monetary policy. These are important to enhance policy credibility long into the future.”