Fitch Revises Jamaica’s Short-Term Indices  

 

• Jamaica holds a score of 47.5 out of 100 in Fitch’s Short-Term Economic Risk Index (STERI), down slightly from a previous 47.9 due to the agency’s outlook for slowing growth, elevated inflation and a high debt burden in the coming years. Vulnerability to external shocks also weighs on the STERI score given a worsening global macroeconomic backdrop.
• Additionally, Fitch’s Long-Term Economic Risk Index score of 45.9 out of 100 reflects structural weaknesses in the economy, including a relatively narrow economic base, inefficient investment policies and historically high unemployment.
• On the other hand, there was an upward revision in Jamaica’s overall score in its Short-Term Political Risk Index from 69.2 to 72.7 out of 100. This reflects the view that a decline in inflation and a recovery in tourism will ease the risks of social instability over the coming quarters.
• Jamaica also has strong 'policymaking' and 'policy continuity' scores, as the ruling Jamaican Labour Party remains largely committed to structural reforms and fiscal responsibility and has a large majority in parliament, with the next election not constitutionally mandated until 2025. 

(Source: Fitch Solutions)