KINGSTON, Jamaica — The International Monetary Fund (IMF) has commended Jamaica’s strong economic policies and sustained reforms, noting that they have helped the country withstand the devastating impact of Hurricane Melissa while maintaining financial stability.

Deputy Division Chief in the IMF’s Fiscal Affairs Department, W Raphael Lam, said Jamaica’s established fiscal, monetary and financial frameworks have played a critical role in supporting the country’s response to the hurricane, the strongest in its recorded history.

Lam made the remarks following an IMF mission to Kingston from October 27 to November 4, during which the team held discussions with government officials, private sector representatives, civil society groups and development partners as part of the 2026 Article IV consultation.

“The authorities’ effective disaster risk financing framework, together with the strength of Jamaica’s fiscal, monetary and financial sector frameworks, has supported an appropriate policy response to cushion the severe impact while preserving market access on favourable terms,” Lam said.

He noted that the priority now is to advance reconstruction while preserving macroeconomic stability and deepening reforms, considering the more challenging external environment.

According to Lam, Jamaica’s economy is showing signs of gradual recovery, with growth expected to improve over the next financial year.

“Following a contraction of 1.2 per cent in financial year 2025/26, growth is projected to recover moderately to 1.3 per cent in FY2026/27, with output returning to its pre-hurricane level by mid-2027, supported by reconstruction efforts and a recovery in tourism,” he said.

The IMF official also highlighted inflationary pressures, noting that rising energy and food prices have pushed headline inflation above the Bank of Jamaica’s target range of four to six per cent.

However, inflation is projected to return to the target range by mid-2027 as supply-related pressures ease.

Meanwhile, Lam said Jamaica’s current account deficit is projected to widen during the current financial year due to less favourable terms of trade.

Despite this outlook, Lam said the country’s international reserves remain adequate, supported in part by disaster-related financial inflows and foreign direct investment.