Jamaica’s debt-to-GDP ratio now stands at 62.4 per cent, down from a previously estimated 67.3 per cent, following the adoption of updated economic measurement standards, the Planning Institute of Jamaica (PIOJ) has indicated.

Speaking ahead of his recent presentation of preliminary economic estimates for the April–June 2025 quarter during which the economy expanded 1.4 per cent, PIOJ Director General Dr Wayne Henry attributed the improved debt figure to the full implementation of the 2008 System of National Accounts (SNA) by the Statistical Institute of Jamaica (Statin), which has refined how GDP and other critical indicators are calculated.

As a result of the updated methodology, Jamaica’s nominal GDP has increased, impacting related metrics such as the debt-to-GDP ratio. Previously estimated at 67.3 per cent for fiscal year 2024/25, the revised figure now places the debt-to-GDP ratio at 62.4 per cent.

As a result of increased nominal GDP estimates, several key ratios — including the debt-to-GDP ratio — have been recalibrated to reflect a more accurate economic picture.

“This brings the country closer to the mandated FY2027/28 debt to GDP target of 60.0 per cent,” Henry said.

Jamaica’s fiscal consolidation efforts continue to show progress. Having reduced its debt from over 140 per cent of GDP in 2013, the country is now positioned to fall well below the 70 per cent mark targeted for this fiscal year. The debt-to-GDP ratio measures a country’s total government debt relative to its annual economic output (gross domestic product), expressed as a percentage. It serves as an indicator of a nation’s capacity to manage and repay its debt — where a high ratio may signal financial strain while a lower ratio suggests greater economic strength and debt sustainability. Economists, investors, and policymakers rely on this metric to evaluate a country’s fiscal health and overall economic stability.

“These methodological enhancements — supported by updated classifications, new data sources, and improved measures of household consumption and informal sector activity has also resulted in an average increase of 7.8 per cent in GDP levels between 2015 and 2023,” he further noted.

Some other changes arising from the revision includes updates to the National Accounts classification of industries which now provide a more accurate reflection of Jamaica’s economic structure. Notable updates include the electricity & water supply industry now renamed electricity, water supply & waste management industry as it captures output from more industries.

“The transport, storage & communication industry is now the transport & storage industry. To capture telecommunication activities, a new industry named ‘Information & Communication’ has been added. The producers of government services industry is now renamed public administration & defence industry while hotels & restaurants industry is now renamed the accommodation & food service activities industry. The other services industry is also now education, health & other services industry,” Henry noted.

The adoption of the 2008 SNA replaces the previously used 1993 SNA. Its implementation now brings Jamaica’s economic reporting in line with international best practices while also enhancing the country’s ability to generate timely and relevant data for policy and development planning. The revisions have been independently reviewed and accepted by key development partners, reinforcing their credibility.

As part of the revision, Statin has also implemented the Jamaica Industrial Classification 2016 (JIC 2016) and rebased the country’s constant price GDP estimates to the year 2015, replacing the previous 2007 base year.

“The update became effective as at the January–March 2025 quarter and currently includes revisions going back to 2015,” Henry said.

HENRY…the debt-to-GDP ratio for FY 2024/2025 was previously estimated at 67.3 per cent. The more accurate accounting for output levels has resulted in a higher GDP level for the fiscal year, and as such, the debt-to-GDP ratio is now 62.4 per cent. This brings the country closer to the mandated FY2027/28 debt-to-GDP target of 60.0 per cent