In the next two years, Jamaica is poised for explosive growth, and I soon tell why I think so.
Jamaica’s economy just got two big thumbs up from international credit ratings agencies.
S&P Global just upgraded Jamaica’s credit rating from BB- to BB and said the outlook for the country’s economy is positive. That puts us just two notches below investment grade. After BB comes double B plus, then we enter the triple B range, which is considered investment grade. It’s a marker to international investors that Jamaica is safe to invest in. And a lot of investors do look to these ratings to decide where to put their money.
Just the week before, Fitch also reaffirmed its positive outlook on Jamaica’s tourism economy and kept the BB- credit rating from February.
Now, according to both agencies, the ratings were based on their strong belief that there will be continuity in the country’s fiscal policies following the reelection of the Jamaica Labour Party to a third term in Government.
S&P pointed out that the government has lowered debt over time and has strong rules that keep budgets on track, so it expects steady growth to continue.
The agency also noted that Jamaica is the only country from 141 rated sovereigns to have an annual revenue surplus over 3% of GDP for 10 consecutive years. And that’s despite going through major shocks like the Covid-19 pandemic and Hurricane Beryl.
Fitch is forecasting government debt to GDP to fall to 59% in 2027 – a year ahead of target. I have no doubt that when we hit that target in two years, Jamaica will be bumped up to investment grade. And then, let the money come in!
Fitch said that while it expects further debt reduction, it will be at a slower pace, especially since there is no clarity on what the goal will be after 2027.
Still, these ratings are a clear vote of confidence from the international community after the General Election.
And remember, these ratings aren’t just nice accolades; they translate to real savings and opportunities for Jamaicans.
A good grade means lenders trust Jamaica more. With that trust, the country can usually borrow money at lower interest rates, saving the government cash. It also helps banks and companies borrow a bit cheaper, too, which supports jobs. And that means more money in your pocket.
And that’s the bottom line.
