Prime Minister Holness Declares Jamaica Has the Strongest Economy Since Independence
“Jamaica today has the strongest economy since independence. Jamaica has a bright future. We are not going back to the failed policies of the PNP.”
-Prime Minister Holness
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Prime Minister Dr. Andrew Holness has declared that Jamaica is experiencing its strongest economy since independence in 1962, attributing this historic achievement to his administration’s prudent financial management, strategic investments, and pro-growth policies.
Speaking during his 2025/26 Budget Debate on Thursday (March 20), Prime Minister Holness outlined a series of historic economic achievements by his government, emphasizing that Jamaica’s transformation has been the result of relentless focus on stability, resilience and growth.
“The numbers do not just tell a story of improvement; they tell a story of transformation—of an economy that has overcome decades of instability, uncertainty, and crisis to achieve a level of strength and resilience that Jamaica has never before experienced,” Prime Minister Holness stated.
Dr. Holness said Jamaica’s economic stability is evident in key indicators such as inflation management, employment, and job creation. The Prime Minister highlighted that under his administration, “inflation has averaged just 5.5% per year—the lowest since 1972—while the PNP’s policies from 1989 to 2007 resulted in an inflation rate of 18.5% per year, totaling a staggering 2,249% over that period.”
Unemployment is at an all-time low of 3.5%, down from 13.7% when the now Opposition PNP left office in 2016. Youth unemployment, which stood at 32% in 2016, has now dropped to 11%.
Since taking office, the Holness administration has facilitated the creation of 253,000 new jobs, nearly doubling the annual job creation rate of the previous PNP government.
Importantly, Dr. Holness pointed out that Jamaica’s exchange rate under his administration has experienced the lowest average depreciation in the country’s history—just 2.9% per year.
In stark contrast, the PNP’s tenure saw an average annual depreciation of 8.5%, with the Jamaican dollar plummeting by 1,178% between 1989 and 2007 alone.
Currently, the country’s Net International Reserves (NIR) have surged to a record US$5.5 billion, providing 29 weeks of import cover—more than double the reserves inherited in 2016.
This substantial buffer ensures economic stability and protects Jamaica from external shocks, a critical contrast to previous periods of crisis under PNP governments.
Additionally, for the first time in decades, Jamaica has recorded consecutive balance of payments surpluses, signaling a shift from dependence on external borrowing to economic self-sufficiency. The country recorded surpluses of 1.9% of GDP in 2022/23 and 3.1% in 2023/24, a stark contrast to the persistent deficits under PNP leadership.
One of the most significant achievements of the Holness administration, the Prime Minister said, has been reducing Jamaica’s debt-to-GDP ratio from over 120% in 2016 to 68.7% today, with a clear path to achieving 60% by 2028.
“This responsible approach to debt management stands in contrast to the disastrous policies of the PNP, particularly during the FINSAC crisis of the 1990s.”
The Prime Minister highlighted the FINSAC debacle, explaining how the PNP’s reckless foreign exchange liberalization and high-interest rate policies led to the collapse of over 40,000 businesses and the destruction of Jamaica’s manufacturing sector. He added that the financial crisis triggered by the PNP caused debt to skyrocket from 72% to 130% of GDP within six years, leaving the country unable to invest in critical infrastructure or education.
In the meantime, Dr. Holness also highlighted the failures of previous PNP administrations, which led Jamaica into economic ruin through reckless taxation, financial mismanagement, and crises that stifled growth for decades.
“In the past, when the PNP presented budgets, the Jamaican people braced themselves for more burdensome taxes. Under this administration, the people anticipate dividends—dividends from the confidence they have placed in us. For the 10th consecutive budget, we have introduced no net new taxes, and for the 8th year in a row, no new taxes. This is a historic achievement that reflects the economic stability we have built,” declared Prime Minister Holness.
Prime Minister Holness underscored that, unlike the PNP’s legacy of excessive debt, economic erosion, and empty promises, the JLP government has consistently reduced taxes while expanding economic opportunity.
Key tax reforms include:
– Raising the income tax threshold from $592,800 in 2016 to $1.8 million in 2025 and set to increase to $2 million over the next two budgets.
– Cutting GCT from 16.5% to 15% and slashing GCT on residential electricity by more than 50% (from 15% to 7%).
– Reducing Transfer Tax on property from 5% to 2% and eliminating burdensome business taxes.
– Raising the GCT turnover threshold from $3 million to $15 million, easing the burden on small businesses.
Additionally, the government has leveraged securitization to accelerate economic growth, strategically converting future income streams into present investments without burdening taxpayers.
Dr. Holness contrasted this with the PNP’s unsuccessful forward sale of bauxite in 2001, which cost Jamaica US$31 million in losses.
Furthermore, Prime Minister Holness also highlighted the steady decline in poverty under this administration, emphasizing that Jamaica’s economic gains are reaching those who need them most.
“Unlike the PNP’s failed dependency model, our approach is not about handouts. We believe in empowerment, not dependence. That is why we are investing in education, training, and job creation, ensuring that Jamaicans lift themselves out of poverty permanently,” Dr. Holness stated.
The Prime Minister also noted that amid global challenges, ranging from the COVID-19 pandemic to supply chain disruptions, Jamaica’s economy has remained stable, resilient, and growing.
Outlining the next phase of Jamaica’s economic transformation, Prime Minister Holness acknowledged the historical struggles of the Jamaican economy, particularly the 38 years lost to crisis and recovery, largely due to poor governance by previous administrations.
“Two of the four major economic crises we have faced were directly caused by the PNP. This was 24 years of hardship from their reckless mismanagement. But under my administration, we have changed Jamaica’s trajectory,” said Dr. Holness.
Moving forward, Prime Minister Holness said the government’s ASPIRE strategy will drive accelerated economic growth, with a focus on:
– Access to Economic Opportunity for All (Inclusive Growth)
– Safety and Security
– People and Human Capital Development
– Infrastructure Development
– Reforming the Bureaucracy for better business efficiency
– Economic Diversification
Prime Minister Holness affirmed that Jamaica’s present economic strength is no accident.
Dr. Holness said the good economy is the result of visionary leadership, prudent policies, and the will to transform the nation.