Entornointeligente.com / Ratings agency Moody’s Investors Service on Tuesday affirmed Jamaica’s long-term issuer and senior unsecured ratings at ‘B2’ with the outlook remaining stable.
The decision to affirm the rating reflects expectations that the deterioration in Jamaica’s debt metrics, caused by the effects of the COVID-19 pandemic, is temporary given the country’s strong commitment to fiscal consolidation.
Moody’s expects Jamaica debt burden to begin declining in 2021/22 with the programmed primary balance of 6.0% of Gross Domestic Product (GDP) this fiscal year.
Additionally, Moody’s indicated that the Government revenues have recovered quickly, and while the revenue intake benefited from a substantial dividend from the Bank of Jamaica “the easing of containment measures and normalisation of economic activity will support revenue returning to pre-pandemic levels by fiscal year 2022/23”.
Moody’s expects Jamaica to experience robust growth in calendar year 2021, with real GDP expanding 4.5%, followed by another year of above normal growth in calendar year 2022 at 2.7%, before subsequently returning to growth of around 2.0% in subsequent calendar years.
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LINK ORIGINAL: Jamaica Gleaner