Time was when we here in Jamaica watched with frustration as our economy continued to decline while other countries across the world experienced impressive growth.

A lot has been written and said about that time, so we won’t dwell on it, only to point out that our miserable fate was a result of bad management of the economy by the then Government which, surprisingly, was kept in power for almost two decades.

Thankfully, that madness and “run wid it” mentality were eventually replaced by sanity and, over successive administrations, certainly since the early 2000s, the economy has been subjected to better management.

The upshot is that today we are seeing improved performance that has received attention in the international community, the latest being an analysis in the highly respected Financial Times newspaper last Friday.

The article, written by Mr Robin Wigglesworth, editor of the
Financial Times’ financial blog
Alphaville, focused on the just-concluded International Monetary Fund (IMF) virtual mission to Jamaica conducted as part of a review of a precautionary credit line and a completion of the regular Article IV reviews of all IMF member countries.

Mr Wigglesworth’s article, headlined ‘The IMF’s fave pupil gets another gold star”, stated that “once again” the multilateral agency’s assessment of Jamaica, that “came very very close to complete financial and economic collapse — and presumably subsequent social and political disaster — in 2012”, was glowing.

He quoted the IMF report, which stated, “Over the last years, Jamaica has successfully reduced public debt, anchored inflation, and strengthened its external position. It has built a strong track record of investing in institutions and prioritising macroeconomic stability. This allowed Jamaica’s response to recent global shocks to be prudent, agile, and supportive of growth.”

The IMF report also said that Jamaica’s economy “continued to recover in 2023. After two years of rapid post-pandemic recovery, GDP (gross domestic product) growth is projected at 1.7 per cent in FY2023/24, with tourism well above pre-pandemic levels, and unemployment falling to a record low of 4.5 per cent by mid-2023. Inflation is converging to the Bank of Jamaica’s target band, though it was recently impacted by an increase in transport prices, whose effects are expected to dissipate towards the end of the year. Projected strong tourism inflows are expected to result in a current account surplus for FY2023/24, supporting a sound international reserves position. The financial system is well capitalised and liquid, and the public debt continues to fall.”

Mr Wigglesworth also referenced Jamaica’s gross government debt-to-GDP, pointing out that after it peaked at 144 per cent in 2012 “the IMF estimates that it has now halved to about 72 per cent and will dip to roughly 68 per cent by the end of the year”.

That, he argued is “within touching distance of Germany’s debt-to-GDP level”.

Interestingly, the IMF report comes just after the World Bank Group projected that Jamaica’s economy is set to expand for a fourth year in a row this year, though at a slower pace from previous years.

These are encouraging times for Jamaica. We have done it. Our task now as a nation is to ensure that we do not return to the days of economic brainlessness.