Jamaica: 2024 Article IV Consultation and Second Reviews Under the Arrangement Under the Precautionary and Liquidity Line and Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Jamaica

2024ARTICLE IV CONSULTATION AND SECONDREVIEWS UNDERTHEARRANGEMENT UNDER THEPRECAUTIONARY AND LIQUIDITY LINEANDARRANGEMENTUNDER THE RESILIENCE ANDSUSTAINABILITY FACILITY—PRESS RELEASE; STAFFREPORT; AND THE STATEMENT BY THE EXCECUTIVEDIRECTOR FOR JAMAICA In the context of theStaff Report for the2024 Article IV Consultation andSecondReviewsUnder theArrangement Under thePrecautionary and Liquidity Line andArrangementUnder the Resilience and Sustainability Facility,the following documents have beenreleased and are included in this package: •Press Releasesummarizing the views of the Executive Board as expressed during itsFebruary 28, 2024,consideration of the staff report that concluded the Article IVconsultation withJamaica. •TheStaff Reportprepared by a staff team of the IMF for the Executive Board’sconsideration onFebruary28, 2024, following discussions that ended onJanuary18, 2024, with the officials ofJamaicaon economic developments andpolicies. Based on information available at the time of these discussions, the staffreport was completed onFebruary12, 2024. •World Bank Assessment Letter for the Resilience and Sustainability Facility •AStatement by the Executive Director forJamaica TheIMF’s transparency policy allows for the deletion of market-sensitive information andpremature disclosure of the authorities’ policy intentions in published staff reports andother documents. Copies of this report are available to the public from International Monetary Fund•Publication ServicesPO Box 92780•Washington, D.C. 20090Telephone: (202) 623-7430•Fax: (202) 623-7201E-mail:publications@imf.org Web:http://www.imf.orgPrice: $18.00per printed copy International Monetary FundWashington, D.C. IMF Executive Board Concludes2024Article IV ConsultationandSecond ReviewsUnder the Precautionary and Liquidity Line andUnder the Resilience and Sustainability Facility ArrangementswithJamaica FOR IMMEDIATERELEASE Washington, DC–February28, 2024:The Executive Board of the International Monetary Fund(IMF) concluded the Article IV consultation1and Second Reviews Under the Precautionary andLiquidity Line and Under the Resilience and Sustainability Facility Arrangements with Jamaica. Over the last years, Jamaica has successfully reduced public debt, anchored inflation, andstrengthened its external position. It has built a strong track record of investing in institutions andprioritizingmacroeconomic stability, whichallowed Jamaica's response to recent global shocks to beprudent, agile, and supportive of growth.After two years of rapid post-pandemic recovery, GDPgrowth is projected at 1.7 percent in FY2023/24, with tourism well abovepre-pandemic levels andunemployment falling to a record-low of 4.5 percent by mid-2023. Inflation is converging to theBank of Jamaica’s target band, though it was recently impacted by an increase in transport prices,whose effects are expected to dissipate towards the end of the year. Projected strong tourisminflows are expected toresult in a current account surplus for FY2023/24 supporting a soundinternational reserves position. The financial system is well capitalized and liquid, and the publicdebtcontinues to fall. The outlook points to sustained growth and inflation falling within the Bank of Jamaica’s targetrange amid sound external and fiscal positions and financial system stability. Nonetheless, globalrisks remain high. A rise in global riskaversion may increase financing costs and lower projectedglobal growth, and regional conflicts could increase global commodity prices. Finally, climate-relatedevents could weaken economic activity.The Jamaican authorities continue to implement soundmacroeconomic policies, aided by strongpolicy frameworks. Supported bybuoyantrevenues and strict control of non-wage spending, a prudent fiscal stance continues to support a reduction inpublic debttowards the target in the Fiscal Responsibility Law. TheBank of Jamaica has maintainedan appropriately tight policy stance, and its data dependent monetary policy is countering theinflationary impulse from a strong economic recovery, tight labor markets, and global commodityprices. This policy mix is placingJamaica in a good position to respond to shocks, counteractinflationary pressures, and secure debt sustainability. Following the Executive Board’s discussion, Mr. KenjiOkamura, Deputy Managing Director andActing Chair of the Board, issued the followingstatement: “Jamaica has continued to build a strong track record of investing in institutions and prioritizingmacroeconomic stability with support of the Precautionary and Liquidity Line and the Resilience andSustainability Facility Arrangements. “Soundfiscal and external positions, entrenched macroeconomic stability, and sound policyframeworks continued to support economic growth and a prudent and agile response to globalshocks. Inflation is converging to the target and a sustained downward trajectory of public debt andreserve accumulation are enhancing Jamaica’s capaci