Published on June 20, 2014
The Jamaican government has embarked on a comprehensive reform programme aimed at raising economic growth. The programme is underpinned by the understanding that fiscal and debt sustainability are necessary conditions for macroeconomic stability and economic growth. A sharp reduction in the debt burden will be conducive to higher private sector-led growth as the government frees more of the available domestic resources and as economic confidence is bolstered. In addition, in this environment, government spending can be directed toward the catalytic development of infrastructure to support growth. The programme also includes key measures to improve the business climate and is supported by major strategic investments, such as the North-South highway, which will link the northern and southern sides of the island, new power plants, and logistics infrastructure. The programme aims at raising GDP growth to more than 2 percent by FY 2016/17.