Fitch upgrades Jamaica’s economic outlook

International rating agency, Fitch Ratings, in their most recent rating on Jamaica, affirmed the country’s long-term foreign and local currency Issuer Default Ratings at ‘B’ and revised the outlook from “Stable” to “Positive”.
According to information released by the Ministry of Finance, the rating action was predicated on the improvements in the macroeconomic and fiscal indicators. The ratings were also supported by the country’s structural strengths, such as relatively high income per capita and social indicators, policy consensus and relatively strong institutional capacity.
The press release highlighted a number of positives which led to latest positive ratings. The factors are macroeconomic stability continues to improve, the public debt to GDP ratio continues on a downward trajectory, Government is on course to record another primary fiscal surplus of around 7 percent of GDP for the current fiscal year, which is equivalent to an overall balanced budget. The other factors are, appreciation of Jamaica dollar relative to the US dollar, Bank of Jamaica benchmark overnight rates have been lowered, external finances are on a sustainable path and external liquidity has improved.