With public debt at 143% of GDP, Jamaica is one of the most highly indebted countries in the world. Jamaica has the third highest debt-to-GDP ratio, after Japan and Greece. Decades of low growth and high debt have led to persistently high poverty and unemployment as well as the departure of many Jamaicans for better opportunities abroad.
The IMF recently approved a 4-year loan agreement with Jamaica under which Jamaica will receive up to US$ 932 million. This will unlock additional funding from the World Bank and the Inter-American Development Bank of around $510 million each. Canada has promised to contribute to program financing by supplying technical and bilateral assistance. The IMF agreement aims to put Jamaica’s public debt on the path to dropping to 96% of GDP by the end of March 2020. Continue Reading