In a staunch rejection of a technical recession facing the island, Prime Minister Dr Andrew Holness says Jamaica’s economy remains strong and resilient.

He pointed to progress in job creation, with unemployment at an all-time low, debt reduction and investment, noting that these are all key indicators of a robust and well-managed economy.

The prime minister, speaking at a New Social Housing Programme (NSHP) handover ceremony in Colleyville, Manchester last Friday (February 14), refuted claims that the country was in a recession.

He noted that despite challenges of hurricane, tropical storm and several weeks of heavy rainfall last year that destroyed crops, disrupted electricity and damaged road infrastructure, the country has shown resilience.

He said that while economic growth declined for two quarters, that, by itself does not mean that the country is in a recession.

“There are other variables such as unemployment…consistently, we are showing very good unemployment figures and in fact, we are at the lowest ever,” he said, further citing robust business activity as people continue to invest.

“We have been building an economy that is resilient, meaning when things hit us, we are able to absorb the hit, bounce back and grow after,” he pointed out.

Holness cited the reduction in the provision for principal debt repayment from J$317 billion in the 2024-2025 budget to J$163 billion in the new fiscal year, as an indication of sound economic management.

“In the new budget there is approximately J$154 billion less in debt repayment. There was no need to find resources to meet that very significant amount of principal repayment,” he pointed out.

He noted further that approaching the closure of this budget year, provision had to be made for J$182 billion for interest repayment, but in the upcoming financial year, interest repayment will amount to J$177 billion, which is a reduction of approximately J$5 billion.

“It means your country is doing better if you are paying less in interest repayment,” he noted.

Holness said further that the percentage of tax revenues collected and paid for interest on debt has been reduced from 33.6 per cent in the 2014-2015 budget year to 18.7 per cent for 2025-2026.

The prime minister said the Government is using the fiscal space created through effective management of the economy to do things that benefit people, such as providing them with housing through the NSHP.