Prime Minister, Andrew Holness (centre), along with Infiniti Cooperative Credit Union Jamaica Limited President, Reverend Glenroy Clarke, and Chief Executive Officer, Camille Campbell Drummond, celebrate the financial entity’s official launch at the AC Hotel by Marriot Kingston recently. Photo: Yhomo Hutchinson

PM Holness says gov’t will maintain Jamaica’s prudent fiscal management

KINGSTON, Jamaica – Prime Minister Andrew Holness, says the Government remains committed to maintaining Jamaica’s prudent fiscal management and will continue to build on the economic gains, thereby improving the lives of all citizens.

Highlighting the country’s continued economic growth and stability, Holness said Jamaica is on track to reduce its debt-to-gross domestic product (GDP) ratio to approximately 68 per cent in the next fiscal year, the lowest in some 50 years, while also noting that inflation fell from 10.3 per cent in November 2022 to 4.3 per cent as of November 2024.

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Additionally, he pointed out that Jamaica has recorded a record low 3.5 per cent unemployment rate.

“Your Government recognises that the cost of living is still high, and we will continue to focus on lowering [that]. So the decline in inflation and the stabilisation of inflation shows that we are moving in the right direction,” the prime minister said.

He was speaking during Infiniti Cooperative Credit Union Limited’s official launch at the AC Hotel by Marriott Kingston recently.

Infiniti is a merger of EduCom Cooperative Credit Union Limited and Gateway Cooperative Credit Union Limited.

Holness noted that Jamaica’s credit ratings are at their highest levels since external grading of the country’s debt commenced, “which clearly signals our enhanced credibility and fiscal strength on the global stage”.

“Last week, Fitch reaffirmed our credit rating at ‘BB-’, with a ‘Positive’ outlook. This signals that Jamaica is on a stronger economic path with lower perceived risks for investors, and this is a very good thing,” he said.

The prime minister also pointed out that after 57 consecutive years of deficits, the country has achieved a balance of payment surplus for the past two fiscal years, describing this as a “monumental achievement”.

Holness informed that Jamaica’s Net International Reserves (NIR) closed 2024 at a record high US$5.6 billion, while highlighting that business confidence has also risen to 7.3 per cent over the previous year to be at its highest level since the second quarter of 2019.

“Before Hurricane Beryl, we recorded 12 consecutive quarters of economic growth, post-COVID. After the brief interruptions caused by the effects of Hurricane Beryl and Tropical Storm Raphael, the Planning Institute of Jamaica has projected that we will return to growth in the January to March 2025 quarter,” he added.

Meanwhile, Holness said murders and major crimes continue to decline. He pointed out that with major crimes recorded in 2024 being the lowest since tracking of the data commenced in 2001, Jamaica is safer today than any other time in the past two decades.

The prime minister said, consequent on Jamaica’s economic stability, the Government has more resources to address the needs of Jamaicans.

He informed that in 2014/15, debt servicing as a per cent of revenues for the economy was about 33 per cent, “[but] today, it is 18 per cent”.

“Jamaica is in a different place today because we have an economy that can fulfil the needs and wants of the Jamaican people. Jamaica has never had an economy in the last 50 years that can deliver like what this economy [currently] can deliver,” the prime minister maintained.

While acknowledging that, “not everything will be delivered in the snap of a finger”, the prime minister assured that “once you have an economy where you are reducing… the level of debt servicing that claims on your revenue… the Government has more resources to address the things you need”.

These, he said, include the acquisition of well over 100 additional buses for the public transport system, pointing out that commuters are able to use these at a subsidised rate on fares, adding “that is the beauty of an economy that works”.

Holness also highlighted the Reverse Income Tax Credit, reiterating that “if you are working [and earning below $3 million], and you are registered and you’re paying taxes, you can get the benefit of [a one-time $20,000 payment]”.

“[That] has never happened before; that is the benefit of having an economy that’s working,” he emphasised.

Holness also noted Jamaica’s improved disaster response capacity, highlighting the country’s ability to provide financial assistance without borrowing.

“When have we ever been struck by a natural disaster and we don’t have to borrow? We were struck by Hurricane Beryl, and because of good fiscal management, we had fiscal buffers; we actually set aside funds. We were able to put $5 billion into the economy right away to provide support for farmers, and 14,000 Jamaicans got rebuilding grants,” he said.

The prime minister pointed out that greater fiscal space will enable the Government to undertake more programmes that benefit Jamaicans.

“The good economy is absolutely important, and the credit union system is critical for that good economy,” he said, while urging credit union borrowers to diversify their investment options.

Holness said the positive macroeconomic indicators and out-turns provide a strong foundation for institutions such as Infiniti to thrive and contribute to national development.

– JIS

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