In his tenth contribution to the Budget Debate as head of government, Prime Minister Andrew Holness declared that since 2016, 253,000 jobs have been created under his administration while also citing that the country is ready for a third term of surplus.

Holness outlined that when the Opposition People’s National Party (PNP) left administration, the unemployment rate was 13.7 per cent. However, the unemployment rate is now at a historic low of 3.5 per cent, thanks to the efforts of his leadership.

“Since 2016, we have created 253,000 new jobs; that’s an average of 28,000 new jobs per year. The last PNP administration, between 2011 and 2016, created an average of 15,000 jobs per year. Our rate of job creation is nearly twice that of the PNP. These are not just statistics; they represent real jobs impacting people, families and communities. Young people who were once left out of economic opportunities now see the door of opportunity opening,” he said.

Additionally, he highlighted that in 2016, the youth unemployment rate was an alarming 32 per cent; now, it is down to 11 per cent.

He further outlined that mothers and fathers who struggled to make ends meet are now securing stable employment. “Jamaica today has the strongest economy since its independence. Jamaica has a bright future; we are not going back to the failed policies of the PNP,” he added.

Jamaica’s currency stability

Holness also stated that during the past nine years, the Jamaican dollar depreciated by an average of 2.9 per cent annually, relative to the US dollar.

“This is by far the lowest rate of currency depreciation under any political administration since independence. By contrast, the dollar depreciated by an average of 8.5 per cent annually under the last PNP administration, and the worst currency depreciation took place under the PNP administration of 1989 to 2007,” he said.

He also expressed that 1989 was the period of foreign exchange volatility under the PNP, highlighting that this was the starting point of Jamaica’s economic woes. “When they assumed office in 1989, the exchange rate was J$5.51 to one US dollar. When they left in 2007, the dollar had fallen to J$70.41 to one US dollar, a whopping 1,178 per cent depreciation.”

However, he noted that Jamaica today has the most robust and transparent foreign exchange market in the region and the most stable foreign exchange (FX) environment since its independence.

“This stability did not happen by chance; it is the product of sound fiscal and monetary policies, increased investor policies and a growing economy that is attracting capital rather than creating capital flight. We must never allow the failed policies of the PNP to destroy what we have built,” he added.

Holness emphasised that an important factor in achieving sustained currency stability is the country’s balance of payment. “The balance payment is like the country’s current account. It’s our income statement with the rest of the world. It tracks the money flowing in and out of the country from trade services and remittances.

“If the money coming in from exports of goods and services and remittances exceeds the money going out to pay for imports of goods and services, the current account is in surplus; that’s a positive. Conversely, if the outflows exceed the inflows, the current account is in deficit. In 62 years since independence, Jamaica has recorded persistent current account deficits,” he continued.

There have only been five years in which we recorded a surplus, and that was in 1963, in 1993 and in 1995, and in that year, we had a minor surplus, Holness said.

However, in fiscal year 2022/23, the country recorded a surplus of 1.9 per cent of gross domestic product (GDP), and in fiscal year 2023/24, Jamaica recorded a surplus of 3.1 per cent of GDP.

“The quarterly current account balances since 2012 show that we have recorded a surplus for seven of the last eight quarters under this administration, so we are well on track to achieve our third consecutive year of a surplus in the current fiscal year. Jamaica today has the strongest economy since independence; we are not going back to the failed policies of the PNP,” he added.