PIOJ Monitoring Impact of US Policy Measures

The Planning Institute of Jamaica (PIOJ) has indicated that it is closely monitoring policy measures in the United States (US) and assessing the likely impacts on the Jamaican economy.

“It is too early to determine the precise nature and magnitude of these changes, as they are still being announced and rolled out. However, these new US policies may have a significant impact on Jamaica, particularly in areas such as trade, foreign aid, and immigration,” said PIOJ Director-General, Dr. Wayne Henry.

He was addressing the quarterly briefing at the agency’s Oxford Road location in Kingston on Wednesday (February 19).

With the US being Jamaica’s largest trading partner, Dr. Henry said, “The potential imposition of tariffs would have an adverse impact on domestic inflation as well as Jamaica’s export performance, as competitiveness could be eroded.”

He also mentioned the 90-day pause on all foreign aid, which took effective January 20, 2025 and is pending a review.

“This has impacted the implementation of programmes in Jamaica, supported by US foreign development assistance,” he pointed out.

Other areas of note include changes in US immigration policies, which he said could reduce opportunities for Jamaicans seeking to work, study, or live in the country.

Additionally, America’s potential withdrawal from international agreements, such as the Paris Agreement and the World Health Organization (WHO), may affect global initiatives that Jamaica participates in, potentially impacting environmental and health-related projects.

Policies influencing household employment, income and economic stability in the US may also affect the flow of remittances to Jamaica, he noted further.