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IMF expects Jamaica's economic growth to slow

The International Monetary Fund (IMF) is projecting that Jamaica's economic growth will slow to 4.3 per cent this year, eventually reaching 1.8 per cent in 2025.
 
This is based on the latest Article Four consultation by the board's executive, details of which were released on Tuesday.
 
The IMF board notes that COVID-19 remains the main risk as further waves could lead to a more prolonged disruption of tourism, trade, and capital flows. 
 
Another risk is the uncertain duration of global inflationary pressures, which have boosted inflation to well above the central bank's target range of four to six per cent.
 
It's projecting Jamaica will end the year with 6.1 per cent inflation.
 
The IMF board says once the pandemic recedes, it will be important for Jamaica to resume growth-friendly fiscal consolidation and put public debt on a downward trajectory. 
 
The directors recommend improving revenue and prioritizing expenditures to create space for health, education, infrastructure, and growth-enhancing investment.
 


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