Finance Minister Says ERP Continues to Yield Positive Outcomes

Finance and Planning Minister, Dr. the Hon. Peter Phillips, says implementation of the Economic Reform Programme (ERP) continues to yield positive and significant outcomes for Jamaica.

Speaking at the Rotary Club of New Kingston’s weekly meeting, held at Chasers Café, Belmont Road, in St. Andrew, on August 15, Dr. Phillips said these successes include declining unemployment; increased infrastructural development; prospects for investments; increase in visitor arrivals, as well as continued buoyancy in agriculture.

In relation to unemployment, Dr. Phillips said the figure for April 2014 showed a three per cent reduction, compared with the corresponding period last year.

“Most significant was the fact that youth unemployment was down even more sharply – five per cent – as against three per cent over the similar  period (last year). It’s still too high, but we have to sustain those gains by creating the conditions for even more productive initiatives to take root,” he said.

Of note, the Finance Minister said, is the “great vibrancy” resonating in the Information and Communications Technology/Business Process Outsourcing (ICT/BPO) sector, which he argued, “offers good job opportunities for our young people leaving our high schools and universities.”

“The DBJ has committed US$23 million of loans (to) that sector, which represents an additional 8,000 jobs. I believe it is quite possible, with the right effort, for us to double the amount of employment in the ICT/BPO sector,” he added.

Dr.  Phillips noted that July 2014 represented “one of the most vibrant months, year on year, that we have had (in tourism), and we expect that trend to continue.” This, he added, is expected to be significantly enhanced “as we are seeing interest in additional  hotel construction in all the main (resort) centres.”

The Minister also pointed to significant activities in relation to expanded port facilities and operations in and around the Kingston Harbour, incorporating  proposed development of the  Portland Bight (Goat Island). He also noted that the divestment of Norman Manley International Airport ( NMIA) and  Kingston Container Terminal (KCT) “is on track.”

Dr. Phillips said there are positive signs in the agricultural sector.  “It continues to grow…although I expect that the rate of growth will be tempered by virtue of the drought conditions which have existed over the past few months,” he said.

The Minister says he remains confident about the country’s performance  under its four-year Extended Fund Facility (EFF), which the Government signed with the International Monetary Fund (IMF).

“We are currently undergoing the fifth review in the programme (being conducted by the IMF Staff Mission Team to the island). Having successfully completed four previous reviews…we are confident in the fifth review having a similar outcome,” Dr. Phillips said.