Sustained signs of activity but growth remains vulnerable to weather. Unemployment is falling, new jobs are being created, and there is robust activity in construction, manufacturing, and hotels and restaurants. Inflation and the current account deficit are low, helped by relatively stable oil prices and the government’s policy efforts. The historically low yields in the recent global bonds’ reopening reflect Jamaica’s hard-won credibility. Nevertheless, weather-related shocks continue to be a drag on growth and have led to a weaker outlook for FY17/18. Program implementation remains strong. All performance criteria and structural benchmarks at end-June were met. The landmark public pension reform bill was passed by parliament. Based on continued strong program implementation and reform commitments, staff recommends completion of the second review.

Author/Editor: International Monetary Fund. Western Hemisphere Dept.

Publication Date: November 2, 2017