Global Factors To Deepen Debt Trap

September 2008 | Economic Analysis

Jamaica's high level of debt as a proportion of GDP means that declining global economic activity, high commodity prices, and the re-pricing of financial sector risk resulting from the credit crunch may pose significant challenges for the Jamaican economy over medium term. Total debt currently stands at 130.7% of GDP, with external debt representing 57.6%. In 2007, as the chart below shows, total debt servicing costs totalled US$911mn, with interest payments representing just below half of this figure. We believe that the debt outlook is likely to worsen before it

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