After five decades of economic stagnation, does Jamaica have the capacity to break the cycle of indebtedness? Are we poised for a new era of economic revival?

Sterling Asset Management’s annual investor briefing, set to take place on November 16, will tackle the question of how to break the mould which has led to 50 years of economic stagnation in Jamaica.

The esteemed panellists will address macroeconomic policy and its role in driving economic growth. Additionally, they will tackle controversial questions, such as the compatibility of a subsidised exchange rate with export-led growth. You are invited to listen to the discussions via a live radio broadcast on Nationwide 90FM with Cliff Hughes.

Economic resilience and reforms

Jamaica’s public debt-to-GDP ratio, which peaked at 110 per cent in FY2020/21, has since declined to 79.7 per cent in FY2022/23 and is expected to gradually fall below 70 per cent over the medium term. These achievements are further highlighted by improved credit ratings from Standard & Poor’s and Fitch.

Despite these successes, Toni-Ann Neita-Elliott, VP sales and marketing at Sterling Asset Management, notes that challenges remain. “Jamaica has faced slow economic growth due to various factors, including low productivity in services, limited technology adoption and innovation, high connectivity costs, a weak business environment, and pervasive crime. The disruptions in learning during the pandemic could have long-term effects on growth and human capital”.

Vulnerabilities and resilience

Jamaica remains highly vulnerable to external shocks, particularly due to its reliance on imports and tourism. The country’s growth and poverty reduction efforts are at risk in the face of external shocks, especially climate-related ones.