IMF and debt hold Jamaica back

3 July 2012

A May report by the US-based Center for Economic and Policy Research (CEPR) found that an overwhelming debt burden and conditions on IMF loans are hindering Jamaica’s economic recovery (see Update 72). Mark Weisbrot of CEPR argued that such “contractionary policies prioritise the servicing of debt over growth and development,” as shown by Jamaica’s budgeted spending, with almost 50 per cent allocated to the debt burden and only 20 per cent to health and education combined. CEPR highlighted how the continued inaction on the country’s IMF agreement is “preventing disbursements of necessary multilateral financing, which, together with pro-cyclical macroeconomic policies have held back the country’s recovery from the global recession.”