Jamaica on Track for 30-Year Low Debt-to-GDP Ratio

Jamaica is on track to achieve a 72 per cent debt-to-gross domestic product (GDP) ratio by the end of the fiscal year, the lowest in 30 years.

Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, made the disclosure while opening the 2024/2025 Budget Debate in the House of Representatives on Tuesday (March 12).

He said that by the end of April 2025, the country’s debt could be as low as 64 per cent of GDP, which will be the lowest debt since 1976.

“We are proud of our commitment and successful effort to reduce the debt ratio to the lowest level in 30 years, and next year the lowest level in 50 years. We are managing the government finances so that we don’t materially increase the size of the debt while we grow the economy and the debt doesn’t become a threat,” Dr. Clarke underscored.

He said that Jamaica is enjoying 10 consecutive quarters of economic growth.

“We want to have longer periods of economic expansion and quick recovery from economic shocks. We want to dampen economic volatility, and it is for that reason why we celebrate the 10 quarters… because it has not been the norm,” the Minister said.

Noting that the country’s fiscal credibility has “improved dramatically”, Dr. Clarke said it has resulted in trust in Jamaica’s economic policymaking environment multiplying several folds and making the country “much more attractive to investment”.

He argued that the more fiscally credible a country is, the better the terms in which it is able to trade with the rest of the world.

“It is a very good thing that we have achieved what we have on the macro level, and it is important that we keep that strength and build on it,” Dr. Clarke said.

Citing the record low unemployment rate of 4.2 per cent, the Minister said the Government wants to create higher-value jobs by improving skills and boosting the educational outcomes of the population.