THE Bank of Jamaica (BOJ) says that Jamaica is experiencing an unprecedented period of economic and financial stability, which has been assisted by the success of the latest International Monetary Fund (IMF)-supported Economic Reform Programme.

The central bank has attributed the success of the programme to the high level of trust and confidence that was created in Jamaica and overseas by the building of a national consensus around the objective of sustainable debt reduction.

“Today, the IMF, World Bank, and the Inter-American Development Bank regard Jamaica very highly. We are now a prime example of a country that has transformed its macroeconomic reality. The country is building fundamental stability in its economy,” BOJ Senior Deputy Governor Dr Wayne Robinson said.

Noting that Jamaica has almost halved its debt in relation to gross domestic product (GDP) from a 146.5 per cent debt to DGP ratio in 2013 to 78 per cent in 2023, Dr Robinson said this represents a transformation in macroeconomic fundamentals that is a necessary foundation on which to build a period of sustained financial and economic stability in Jamaica.

The BOJ senior deputy governor was delivering an address on behalf of BOJ Governor Richard Byles at the staff awards ceremony of the Electoral Commission of Jamaica (ECJ) at the Terra Nova Hotel in Kingston, recently.

He pointed to unemployment being reduced from 14.5 per cent to 6.2 per cent over the decade, and the country’s net international reserves growing significantly from US$884 million, covering 11 weeks of imports in April 2013, to US$4.2 billion – adequate for 27 weeks of imports – 10 years later, as further evidence of the economic turnaround.

The central banker said the country’s debt rating also illustrates the positive developments in the economy. “In 2013, Standard & Poor’s rated Jamaica’s bonds as CCC with a negative outlook, meaning that Jamaican bonds were considered to be junk. Today, that rating has improved to B+ with a stable outlook. Jamaican bonds now trade at a higher premium than those of some other countries with a B+ rating. This is an indication that people regard the financial situation in Jamaica to be very positive and very stable,” he explained.

The BOJ senior deputy governor expressed the view that the major reasons accounting for the economic success included the broad national support that was built around the economic reform programme.

“Administrations formed by both political parties agreed to press ahead with the programme, the private sector was on board, the trade unions and civil society supported it. There was relative industrial calm despite workers enduring some austerity that accompanied its implementation. Over time, the population also owned and supported the objective of debt reduction. This created trust and confidence locally and internationally,” Dr Robinson said.