G2K WELCOMES FITCH’S UPGRADE OF JAMAICA’S DEBT RATING TO B+
Kingston, Jamaica: Generation 2000 (G2K) the young professional affiliate of the Jamaica Labour Party (JLP), welcomes international ratings agency FITCH’s upgrading of Jamaica’s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to ‘B+’ from ‘B’ whilst holding its outlook as ‘Stable’. The organization notes that this is the highest rating that Jamaica has received in thirteen (13) years
Jamaica is expected to achieve even higher levels of growth in the upcoming financial year and a Debt-to-GDP ratio below 100% for the first in many years. Also, the forthcoming Bank of Jamaica Bill will establish the independence of our Central Bank in the pursuit of inflation-targeting. The international financial community would have seen these and other developments, so the upgrade by FITCH comes as no surprise. In fact, we can expect this positive trend to continue if we keep improving our collection mechanisms and maintain fiscal discipline,” said G2K President, Mr. Stephen Edwards.
In its release, FITCH noted that the four-year wage deal with the public-sector unions reduced risks to its forecasts of a general government surplus of 0.8% of GDP in 2019 and 0.7% in 2020.
G2K Vice President Ryan Strachan commented that “the FITCH upgrade is the latest in a series of positive economic indicators that validate the distinct policy directives of the Andrew Holness-led Administration. In terms of macro-economics, taxation revenues exceeded budget and have provided fiscal space for a 53.1% increase in capital spending that will redound to the benefit of generations to come. This was no doubt influenced by the shift towards indirect taxation. In terms of microeconomics, we see the encouraging growth in the world-leading Jamaica Stock Exchange that was attributable in part to the restoration of Junior Market incentives in 2016.”
Generation 2000 notes that Jamaica’s long-term economic stability, which has been reaffirmed by the improved rating from FITCH, is key to economic growth. The organization is therefore encouraging Jamaicans to remain resolute in their support for Government polices that are aimed at achieving set targets and maintaining fiscal discipline.