IMF Executive Board Concludes Fifth Review under the Stand-By Arrangement for Jamaica

• The Executive Board of the International Monetary Fund (IMF) completed the fifth review of Jamaica’s performance under the Stand-by-Arrangement (SBA) on April 22, 2019.
• The Jamaican authorities continue to view the SBA as precautionary and will use it as an insurance policy against unforeseen external economic shocks that could lead to a balance of payments need.
• Reduction in the primary surplus target by ½% GDP to 6½% in the FY19/20 budget will facilitate higher spending in social assistance, citizen security, and infrastructure.
• Reducing the highly distortive financial turnover taxes is expected to lower the cost of doing business and increase economic activity. Tackling governance issues swiftly and forcefully is necessary to enhance transparency and accountability, bolster trust in public institutions, and protect public funds.

(Source: IMF)