Jamaica’s Economy Is Stronger Than Ever, Resilient, Growing, and Open for Investment
Prime Minister Dr. Andrew Holness says Jamaica now has the strongest and most resilient economy in its modern history.
Prime Minister Holness says the economy for the past nine years has been built on consistent growth, reduced debt, record-low unemployment, and a stable, investor-friendly climate.
Speaking on Wednesday (July 23) at the 200th anniversary celebration of J. Wray & Nephew, Prime Minister Holness outlined how the Government is removing every obstacle to growth, reforming bureaucracy, and laying the groundwork for a globally competitive Jamaican economy.
Dr. Holness highlighted unprecedented macroeconomic progress under his administration, crediting a combination of fiscal discipline, private-sector partnership, and focused policy reforms, including:
- Reduction in debt-to-GDP from over 140% in 2013 to 68.7% today, with a target of 60% by 2027.
- The lowest unemployment rate recorded in Jamaica’s history of 3.3%.
- Stable inflation, within the Bank of Jamaica’s target band.
- Nine consecutive years of no new taxes, boosting investor confidence.
- Foreign exchange availability is secure, with record-high international reserves and no capital controls, making Jamaica unique in the region.
“We have achieved all of this while delivering the longest period of sustained economic growth in Jamaica’s history,” Dr. Holness said.
Even after Hurricane Beryl and Tropical Storm Rafael, Prime Minister Holness said the economy is back on its growth path, referencing 20 consecutive quarters of growth before COVID-19 and 13 consecutive quarters after.
The Prime Minister emphasized that resilience is now a defining feature of Jamaica’s economy.
“It took us 10 years to recover from the 2008 global recession. We had a debt crisis sparked by FINSAC. It has taken us 30 years to reach the pre-FINSAC level of debt. In other words, our debt-to-GDP ratio today of 68.7% is where we were 30 years ago. It took us 30 years to get back to that point. COVID-19 wiped off 10% of the top of our GDP, and we recovered from that in two years. It knocked off 150,000 jobs. We recovered from that in two years. And better than that, we are now at our lowest level of unemployment. That is the ultimate sign of a resilient economy,” Prime Minister Holness explained.
Meanwhile, the Prime Minister also pointed to the US$500 million investment made by the Campari Group in J. Wray & Nephew as a vote of confidence in Jamaica’s stability and future.
Dr. Holness said the Government is matching such confidence by modernizing trade and infrastructure systems, which include digitizing export processes, reforming customs, reducing corporate tax for manufacturers, upgrading major infrastructure, including Spanish Town Road, and creating a more efficient public sector by streamlining approvals and reducing red tape.
“We are transforming the business environment step by step, removing all obstacles to growth. Our goal is to make Jamaica the most business- and investor-friendly country in the region,” he said.
The Prime Minister also identified bold reforms in the energy sector as the next step towards driving economic growth and reducing operational costs for businesses and households.
With the current electricity license expiring in 2027, the Government plans to renegotiate within a framework that will lower energy costs, improve customer service, and expand renewable energy use.
“If we can stabilize inflation, the dollar, and taxes; cut red tape in our public bureaucracy; reduce crime; and reform the energy sector, then there will be nothing standing in the way of Jamaica becoming the economic powerhouse of the Caribbean.”
Prime Minister Holness said partnership with the private sector is needed to sustain Jamaica’s economic transformation.
“We are building a more resilient, more inclusive, and more prosperous Jamaica, and we are inviting the private sector, both local and international, to be partners in this national transformation.”