Macroeconomic Forecast Jamaica

April 2007 | Macroeconomic Forecasts

The level of foreign reserves accumulation in 2006 was less than half what we had expected, with the central bank's holdings increasing by US$1.49bn to US$2.32bn (compared to the US$2.56bn we had forecast). Given our expectation of a sustained current account deficit in 2007 and 2008 amid high global commodity prices, we have revised our forecast for reserves downward for this year and next, from US$3.02bn to US$2.55bn, and from US$3.56bn to US$2.80bn, respectively. At an average of 5.9 months worth of import cover, these levels of reserves should be sufficient to guard against short-term shocks,

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