The Barbados-based Caribbean Development Bank (CDB) says the medium-term outlook for Jamaica “is positive” with 1.7 per cent growth projected for the financial year 2018-19.
In its “Country Economic Review of Jamaica”, the CDB said that tourism, manufacturing, agriculture, and construction are the sectors most likely to drive growth in the short term.
It said the productivity-enhancing reforms and public investments that have been undertaken during the implementation of government’s reform programme are expected to contribute to increased domestic demand.
It said that Jamaica’s economy grew by 2.4 per cent last year led by increased tourism and construction activity. Inflation decreased as food prices fell, while unemployment was lower than in the previous year. An accommodative monetary stance contributed to credit growth, which coincided with improvements in doing business conditions and an increase in consumer confidence.
The CDB said that fiscal performance was strong; and debt as a percentage of gross domestic product (GDP) declined.
