The economic projections were presented in a memorandum sent to the Board of the IMF
The Government of Jamaica is projecting a sharp slowdown in the economy arising from the impact of Hurricane Melissa.
In a memorandum sent to the Board of the International Monetary Fund, the government forecasts a 4.3 per cent decline in economic activity and inflation of 9.5 per cent for fiscal year 2025 to 2026.
The document was submitted to secure approval for a US$415 million drawdown from the IMF's Rapid Financing Instrument to help meet urgent balance of payments needs after the storm devastated foreign exchange earnings and the savings sector.
The projections also show tax revenues at 30 per cent of GDP, government spending at 33.8 per cent of GDP, and a fiscal deficit of 3.4 per cent of GDP.
The government expects a primary surplus of 1.7 per cent, while the debt-to-GDP ratio is projected at 68.6 per cent.
The current account deficit is programmed at two per cent of GDP, while gross international reserves are expected to cover 6.7 months of imports.
External debt is projected to stand at 63 per cent of GDP.
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