Prime Minister Andrew Holness says unlike richer countries, Jamaica will maintain its debt-to-GDP ratio as best as fiscally possible, as it cannot afford to engage in ‘reckless’ deficit spending.

Holness, who was speaking via Zoom on Friday (January 8) with Bloomberg News, expressed optimism with the approach being taken by President-elect Joe Biden that the US economy would recover soon—creating a positive ripple effect for Jamaica.

“We are very much tied [to] the economy of the United States… We have a vested interest and we pay keen attention to ensure that the United States economy recovers and quickly; that would certainly have an impact on our economy,” he began.

“I listen very carefully to President-elect Biden, and he started at the same place I did, which is to get the pandemic under control, investing in the economy, investing in infrastructure, ensuring the social welfare of the population is dealt with, and we’re doing that similarly in Jamaica,” Holness added.

Where Jamaica falls short, Holness noted is the approach to deficit spending as the island has pledged to continue its “solid fiscal response”.

“Our good fiscal management over the last decade, the last five years especially, would have given us a small buffer and we’re going to use that very strategically [and] creatively. But at the same time, we’re going to ensure we don’t cross our fiscal lines and that we keep our economy on the right track,” he argued.

Prime Minister Holness told Bloomberg News that it was understandable Jamaica’s debt-to-GDP ratio had risen due to the impact of the coronavirus (COVID-19) pandemic. He said, however, that his government sees it as a short term sacrifice.

“We are seeing industries in Jamaica growing and so, we hold a very optimistic outlook for the near future,” the prime minister said the Jamaican economy.

Notwithstanding, Holness contended that once the COVID-19 vaccines are widely distributed and administered, the government would be on track to kickstart the ailing tourism sector.

Visitors from the US account for 70 per cent of market share in Jamaica, Holness indicated.