Economy / Jamaica
If you would like to subscribe to Caribbean Monitor and gain instant access to this article, please click here to subscribe.
If you would like to take a trial to Caribbean Monitor please click on the trial link below.
Global Factors To Deepen Debt Trap
September 2008 | Economic AnalysisSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
If you would like to subscribe to Caribbean Monitor and gain instant access to this article, please click here to subscribe.
If you would like to take a trial to Caribbean Monitor please click on the trial link below.
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