Jamaica: 2022 Article IV Consultation-Press Release; Staff Report and Staff Statement

The 2022 Article IV Consultation highlights that Jamaica has been buffeted by a difficult global environment—from coronavirus disease (COVID), the war in Ukraine, and the ongoing tightening of global financial conditions. The authorities provided targeted support to vulnerable households and firms during the pandemic but promptly scaled it back as conditions normalized. Similarly, in the wake of the war in Ukraine, domestic food and energy prices adjusted in line with shifts in international markets while targeted support was provided to the poor. Discussions focused on the prompt post-COVID fiscal consolidation and monetary policy tightening, which were instrumental to secure debt sustainability, respond to global shocks and aid the return of inflation to the target band. The IMF staff assess that maintaining high primary balances over the medium term remains important for debt sustainability. The Article IV consultation places a special focus on climate change. Despite contributing insignificantly to global greenhouse gas emissions, Jamaica’s geographical and socio-economic characteristics make the country vulnerable to climate events that are becoming larger and more frequent due to global warming.