Jamaica’s economy achieved several firsts in the 2023/24 fiscal year, as outlined in the Governor-General’s Throne Speech during the Ceremonial Opening of the 2024/25 Parliamentary Year at Gordon House on February 15, 2024.
The pioneering achievements included ten (10) consecutive quarters of economic growth since the onset of COVID-19, the lowest unemployment rate since independence in 1962, the first balance of payment surplus on the Current Account since 1966, a ‘BB-’ rating by Standard and Poor’s in September 2023, and the issuing of the first ever Jamaican Dollar linked bond on the international market in the amount of J$46.6 billion or US$300 million.
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Economic Milestones Achieved by Jamaica During Fiscal Year 2023/24
The Government of Jamaica (GOJ) through its various programmes and projects has achieved a number of pioneering macroeconomic milestones for the fiscal year, 2023/24.
Macroeconomics, according to the World Bank, "focuses on the performance of economies – changes in economic output, inflation, interest and foreign exchange rates, and the balance of payments." The Bank further notes that "poverty reduction, social equity, and sustainable growth are only possible with sound monetary and fiscal policies."
In the last fiscal year, Jamaica’s economy achieved several firsts, as outlined in the Governor-General's Throne Speech during the Ceremonial Opening of the 2024/25 Parliamentary Year at Gordon House on February 15, 2024.
These include:
Ten (10) consecutive quarters of economic growth since the onset of the COVID-19 pandemic in March 2020. Prior to the pandemic, Jamaica had 20 consecutive quarters of economic growth, indicating a solid record of sustained growth. The significance of economic growth is that it increases the country's capacity to produce goods and services to meet the needs of citizens. These include healthcare, education, social protection and other public services.
A 4.2% unemployment rate, the lowest since independence in 1962, with 156,000 new jobs created since 2016. The lower the unemployment rate, the healthier the economy.
A balance of payments surplus on the Current Account was achieved for the first time since 1966. A surplus is indicative of an economy that is a net creditor to the rest of the world, while a deficit reflects the opposite - a net debtor to the rest of the world.
BB- rating by Standard and Poor's (S&P) on September 13, 2023. This is an upgrade of the GOJ's Long-Term Foreign and Local Currency Issuer Default Rating (IDR) from B+ to BB-, with a ‘Stable’ outlook. This rating is the best global grading Jamaica has ever received from S&P since the entity commenced rating the country’s sovereign debt in 1999. The rating provides the opportunity to access financing at relatively lower costs than previously. This also means that more funds become available for other government expenditure, such as health, education, security and infrastructure.
The first-ever Jamaican Dollar linked bond was issued by the GOJ on November 3, 2023, on the international market in the amount of J$46.6 billion or US$300 million. The objective of the bond issue was praised by international credit rating agency, Moody's, in an Issuer’s Comment. It stated that the use of the proceeds to buy back outstanding USD-denominated bonds will reduce “the Government’s exposure to foreign-exchange risk, which is a credit positive," adding that "over time, this reduction in exchange rate risk is expected to address one of the sovereign's key credit challenges."
Record-high Net International Reserves (NIR) of US$4.752 billion as reported by the Bank of Jamaica (BOJ) at December 31, 2023. At its current value, the nation’s international reserve is US$771.89 million or 19% higher than the US$3,976.25 million held by the BOJ on December 31, 2022. The current NIR supports approximately 34.82 weeks of goods imports and 23.89 weeks of goods and services imports, should a local or international shock prevent the country from exporting its goods and services to earn foreign exchange.
Jamaica is on course to lower its debt to gross domestic product (GDP) ratio to 74 per cent by the end of March 2024, which is the lowest in 25 years.
