May 2012, Jake Johnston and Juan Antonio Montecino

This paper looks at Jamaica’s stalled agreement with the International Monetary Fund (IMF), its economic performance over the past year and examines its persistently high debt burden. It finds that an unsustainable debt burden continues to displace needed investments, preventing long-term growth. The stalling of the IMF agreement has prevented disbursements of necessary multilateral financing, slowing the economy’s recovery. Together with pro-cyclical macroeconomic policies supported by the IMF, the recovery of the Jamaican economy remains muted.

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