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KINGSTON, Jamaica, CMC – The International Monetary Fund (IMF) says the Jamaican government needs to reduce bureaucracy by creating a “more business friendly public sector.”
In a statement issued following an IMF mission that ended on Friday, mission chief Jan Kees Martijn said, while Jamaica’s economic outlook is improving, “the critical challenge ahead will be to sustain the reform momentum and strong fiscal position,” wide ranging efforts will be needed to improve the business climate.”
“Work is still required, though, to streamline the process for construction permits, create a more business friendly public sector by reducing bureaucracy, and to make the energy sector more efficient.”
He added that the country must maintain the primary surplus of the central government at 7.5 percent of Gross Domestic Product (GDP) in 2015/16, by building a stronger tax administration and restraining the
wage bill through a public sector transformation that raises government efficiency.
Martijn said Jamaica’s Extended Fund Facility (EFF), under the IMF’s programme is on track and all programme targets to the end of September were met.
“The economic outlook is improving, activity is estimated to have expanded by about 1.8 percent year on year during April – June 2014.”
He however, noted that the recent drought is expected to have undercut growth in the July-September quarter, but the economy will pick up with growth projected at 2 percent in 2015/16.
Concerning inflation – he said it is likely to remain around 8 percent this year.
The IMF’s Executive Board is expected to consider the sixth review of Jamaica’s IMF-supported program under the EFF in December.
Upon approval, US$68 million will be made available to Jamaica.
While in Jamaica, the mission met with Finance Minister, Dr. Peter Phillips, Central Bank Governor, Brian Wynter, Financial Secretary, Devon Rowe as well as representatives of the private sector and civil society.
