Outlook and conclusion
Jamaica continues to meet its macro fiscal targets. Inflation at 4.7 per cent is stable and within the targeted range. Interest rates are trending downwards and non-borrowed reserves of US$2,377 million remain strong and will exceed the December programme target. Tax revenues continue to be buoyant, which has given the Government of Jamaica (GOJ) the opportunity to table a supplemental budget, increasing spending in the key areas such as national security, infrastructure, and tourism. The Planning Institute of Jamaica projects growth to be in the range of 1.5 per cent – 2.5 per cent for the October to December quarter.
THE CALL FOR A NEW-STYLE EPOC
There have been calls from leaders in civil society and from the media for a stronger independent body to be put in place and possibly entrenched in legislation to provide oversight over Jamaica’s Programme for Economic and Social Affairs. EPOC believes that this discussion is an important one to have as Jamaica builds to protect the gains that all have sacrificed for and to ensure the continuity of oversight as we all work for a stronger and resilient economy.
EPOC is committed to continuing in its role of monitoring the macro fiscal programme of the GOJ, ensuring independent reporting on the progress in these areas.
It was also noted that there are ongoing efforts to establish the autonomy of the Bank of Jamaica and to strengthen the capacity of Parliament for fiscal and budgetary analysis. This institutional framework will provide even greater independence and critical review of important monetary and fiscal targets. EPOC will continue to monitor developments in these areas.
EPOC said that it would continue to utilise all existing channels implemented for sharing of information such as monthly report submissions in the print media, quarterly press briefings and interviews, digital engagement via our social media channels and through communityengagement sessions.
PUBLIC SECTOR WAGE NEGOTIATIONS
Further to its recent visit to complete the second review under the International Monetary Fund Programme (IMF), the IMF stated in its Public Release on December 8, 2017, that “delayed public sector wage negotiations pose significant budgetary risks” and apprised the Government of the urgent need to accelerate these negotiations. EPOC supports this position and encourages the Government to quicken the pace to conclude wage negotiations.
EPOC said that it is continuing to monitor plans and imperatives that support the legislated fiscal rule of wages and salaries representing no more than nine per cent of the gross domestic product in the 2018-19 fiscal year.
VALE ROYAL TALKS
EPOC welcomes the announced resumption of the Vale Royal Talks. With crime being such a negative weight on the economy and mental strain on our people, we expect that crime will be a high priority on the agenda.