Debt, fiscal adjustment, and economic growth in Jamaica
Date
Jan 2016
The buildup of debt in Jamaica has been concurrent with the country's sloweconomic growth, and the issues are intertwined. High debt slows economic
growth, and slow economic growth makes the process of reducing the debt
burden more difficult. Jamaica committed itself to a strict fiscal consolidation
program to reduce its debt burden. The fiscal consolidation will be long,
spanning more than half a generation, until reaching the debt-to-GDP target of
60 percent by 2026. Besides adhering to the fiscal targets, success will depend
on the country's ability to break away from a history of low economic growth.