Govt Looking At Targeted Measures to Accelerate Economic Recovery

Prime Minister, Dr. the Most Hon. Andrew Holness, says the Government’s commitment to fiscal responsibility has enabled the country to withstand the worst effects of hurricane Melissa, proving that the economic foundation is stronger, more resilient than ever before.

He noted that the Administration is now looking at targeted measures to further support the economy and accelerate recovery.

“So, our fiscal strength has given us the wherewithal to respond, but it is becoming clear that the Government may need to undertake counter-cyclical measures to support the economy even further in this period. Because we have gained in our fiscal management, we are in a position to do so without putting our stability at risk. That is what you invest in fiscal responsibility for – to give you the capacity, during these difficult times to give support, further support, to the economy,” he said.

“Let’s be clear – the economy is doing better than was projected. The growth is negative but it gets less negative each quarter. It tells you that the economy is fighting back, but we’re not going to take any chances. We’re going to support our businesses, support our small businesses as much as we can to get out of the Hurricane Melissa drag,” he pledged.

Dr. Holness, who was addressing a recent grant-signing ceremony at the AC Marriot Hotel in St. Andrew, noted that drought conditions are also having an impact on the economy.

“Drought has an impact on inflation, particularly food inflation, because drought impacts farmers in a similarly devastating way as it impacts households. So local supply of food is impacted. Normally in a drought in Jamaica, we probably could import lower-cost food, but what we are seeing is that food prices internationally are increasing… because oil prices are also increasing,” he pointed out.

“So, you’re going to have some imported inflation as well; so, we’re going to use our fiscal responsibility – the wherewithal we have gained from it; we’re going to use it wisely,” he stated.

He said that the Government will be meeting with the private sector to discuss measures that could be implemented to support greater economic activity.