KINGSTON, Jamaica – Prime Minister Andrew Holness has reaffirmed Jamaica’s economic strength and resilience, highlighting significant advancements in job creation, with unemployment reaching record lows, alongside notable debt reduction and increased investments. These factors are key indicators of a well-managed and robust economy.
During a New Social Housing Programme (NSHP) handover ceremony in Dobson, Colleyville, Manchester, Prime Minister Holness addressed misconceptions regarding the country’s economic status, asserting that Jamaica is not in a recession.
He acknowledged the challenges faced last year, including hurricanes, tropical storms, and heavy rainfall that affected agriculture, electricity, and road infrastructure. Despite temporary economic growth declines over two quarters, he emphasized that this does not equate to a recession.
“While facing obstacles, our unemployment figures have remained consistently strong, reaching an all-time low. This reflects robust business activity, as investments continue to flow into our economy,” Prime Minister Holness stated.
“We are committed to building a resilient economy, capable of absorbing shocks and rebounding effectively.” He further noted a significant reduction in principal debt repayment allocations in the budget, from $317 billion in 2024-2025 to $163 billion for the new fiscal year, demonstrating sound fiscal management.
“The upcoming budget shows a decrease of approximately $154 billion in debt repayment requirements. We are also observing a reduction in interest repayments from $182 billion to $177 billion for the next financial year, indicating an overall financial improvement for the country.”
Additionally, the Prime Minister pointed out that the proportion of tax revenues used for interest payments has decreased from 33.6% in the 2014-2015 budget to 18.7% projected for 2025-2026.
Holness emphasized the government’s intention to utilize the fiscal space generated by effective economic management to implement initiatives that directly benefit citizens, such as the housing provided through the NSHP.
