Jamaica to register economic growth of 1.5 per cent this year - IMF

BRIDGETOWN, Barbados,  May 11, CMC –The International Monetary Fund (IMF) today said that Jamaica will register economic growth of 1.5 per cent this year.

The IMF projects that the figure will rise slightly to 1.8 per cent next year.

The information is contained in the fund's Regional Economic Outlook for the Western Hemisphere released on Friday.

The IMF says the prospects for economic growth in the Caribbean region are improving with growth in both tourism-dependent economies and commodity exporters projected to be in the one to two per cent range for the next two years.

The Washington-based financial institution estimates growth for the Latin America and Caribbean region to increase from 1.3 per cent in 2017 to two per cent in 2018.

For 2019, the IMF forecasts growth to continue to pick up to 2.8 per cent.

According to the IMF, Grenada is expected to register the highest growth for the next two years, pegged at 3.6 per cent while Guyana’s growth is put at 3.5 per cent this year growing to 3.7 the following year.

In its publication, the IMF said that following the recovery in private consumption in 2017, business investment in Latin America and the Caribbean is expected to rise and become the main driver of economic activity, after a three-year contraction.

But it warned that despite this rebound, investment levels are expected to remain below the levels as seen in other regions, limiting the region’s growth potential, according to the report.

But many challenges lie ahead for the region. According to the report, non economic factors that could derail the region’s recent economic recovery include political uncertainty due to upcoming elections in several countries, geopolitical tensions, and extreme weather events.

Heightened economic risks externally, notably, a shift towards more protectionist policies and a sudden tightening of global financial condition, could also weigh heavily on growth prospects, the report noted.

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