Jamaica: Third Reviews Under the Arrangement Under the Precautionary and Liquidity Line and the Arrangement Under the Resilience and Sustainability Facility-Press Release and Staff Report

This paper focuses on Jamaica’s Third Reviews Under the Arrangement Under the Precautionary and Liquidity Line (PLL) and the Arrangement Under the Resilience and Sustainability Facility (RSF). Jamaica’s response to recent shocks has strengthened the credibility of policy frameworks, supporting an economic environment characterized by sustained growth, declining debt, low inflation, and a strengthened external position. Jamaica has continued to implement an ambitious reform agenda that strengthened the fiscal and financial policy frameworks and the climate policy agenda to make the economy more resilient to climate change. Going forward, gross domestic product growth is expected to converge to potential and inflation to return to the mid-point of the target band. The PLL has supported efforts to strengthen the institutional framework for consolidated supervision of financial conglomerates, enhance the framework for the resolution of financial institutions, bring the anti-money laundering and countering the financing of terrorism framework to international best practice, and improve data adequacy. The RSF has supported Jamaica’s ambitious agenda to accelerate the transition to renewables, increase resilience to climate change, enhance the climate focus in fiscal policy frameworks, strengthen the management of climate risks by financial institutions, and catalyze climate financing.