Macroeconomic Forecasts - Jamaica - APR 2018
Tourism will support growth acceleration in Jamaica in 2018, following a muted 2017 due to agricultural sector weakness. Economic reforms and a gradual loosening of austerity measures will support higher growth rates over the long-term.
The Jamaican dollar will depreciate modestly in the coming months, as accelerating inflation and a widening current account place downward pressure on the unit. That said, an improved external...
Jamaica will maintain a modest fiscal surplus in 2018 as the government focuses on generating revenue and constraining expenditure growth. As a result, government debt levels will continue to fall, supporting Jamaica's sovereign credibility.
Growth in Jamaica will gradually accelerate in the coming years, supported by remittances and tourism from the US and an improving business environment. The Jamaican government's commitment to an IMF-stewarded reform programme will under an uptick in investment and productivity.
Import growth, driven by rising fuel costs, will push Jamaica's current account deficit wider in the coming years. Despite this, capital inflows and robust international reserves will support external stability.