Dear Editor,
For the first time, we in Jamaica have solid economic management in every facet or fiscal situation; not growth at the expense of debt, jobless growth, or sporadic growth in GDP only. This represents a fundamental shift from 50 years — 27 under the People’s National Party (PNP) and 23 under the Jamaica Labour Party (JLP).
Both parties are to blame for the situation in which we have found ourselves. We often hear comparisons with places like Malaysia and Singapore; however, the countries mentioned had uninterrupted and even dictatorial administrations, not to mention cultural differences.
We are not them, we are a democracy, and in exercising our democratic rigour, we have now reached a crossroad moment. The truth may offend, but it’s not a sin. The drastic turnaround in the economy happened under Portia Simpson Miller’s leadership, whether we accredit it to her attributes or lack thereof.
For the first time in our history, everything having to do with creating a prosperous Jamaica is aligned in one cohesive step forward. Every macro indicator is positive and continues to trend. Every international report on the country’s health is positive. Jamaica has successfully navigated 11 consecutive International Monetary Fund reveiws. As a result, we have a Jamaica with a growing economy, evidenced by real GDP growth of 2012-2013 (-0.5), 2013-2014 (+0.2), 2014-2015 (+1.0), 2015-2016 (+1.7*); a net gain of 2.4 per cent or (0.6 per cent per year).
So the rate of growth is also improving, compared to the 13 quarters of negative growth between 2007 - 2011, which resulted in a net contraction of 4.3 per cent. The debt-to-GDP ratio, which climbed to 147 per cent under the JLP, as it grew nominally between 2007-2011, has now shrunk to 125 per cent. Investor confidence is high again and growth is accelerating.
Foreign direct investment inflows are now back up to in excess of US$1 billion over the term, having fell to US$218 million under the JLP’s four years, as investors pump more money into the tourism, energy, BPO, beverage manufacturing, and the construction sectors.
Consequently, with approximately 22,600 new jobs created between October 2014 and October 2015 alone, unemployment has also fallen by 4.5 per cent from the 2013 high of 16.9 to 12.34, still higher than the 9.9 it was in 2007, but lower than the JLP’s 12.7 in 2011.
Inflation is currently at an all-time low of 3.7 per cent, down from more than 11.18 per cent under the JLP, a record as it is the lowest in 48 years; while the net international reserves remains in excess of US$2.43 billion. Interest rates have continued to fall moving from 6.46 per cent in 2011 to 5.25 per cent.
These facts prove beyond a shadow of a doubt that this Administration, empowered by their deeds and not words, has made a compelling case for a second term, and given the distinction with which they have separated themselves from all previous administrations, can without fear of contradiction say we have come too far, sacrificed too much to turn back now!
Gavin C Simpson
gslinkage@gmail.com
For the first time, we in Jamaica have solid economic management in every facet or fiscal situation; not growth at the expense of debt, jobless growth, or sporadic growth in GDP only. This represents a fundamental shift from 50 years — 27 under the People’s National Party (PNP) and 23 under the Jamaica Labour Party (JLP).
Both parties are to blame for the situation in which we have found ourselves. We often hear comparisons with places like Malaysia and Singapore; however, the countries mentioned had uninterrupted and even dictatorial administrations, not to mention cultural differences.
We are not them, we are a democracy, and in exercising our democratic rigour, we have now reached a crossroad moment. The truth may offend, but it’s not a sin. The drastic turnaround in the economy happened under Portia Simpson Miller’s leadership, whether we accredit it to her attributes or lack thereof.
For the first time in our history, everything having to do with creating a prosperous Jamaica is aligned in one cohesive step forward. Every macro indicator is positive and continues to trend. Every international report on the country’s health is positive. Jamaica has successfully navigated 11 consecutive International Monetary Fund reveiws. As a result, we have a Jamaica with a growing economy, evidenced by real GDP growth of 2012-2013 (-0.5), 2013-2014 (+0.2), 2014-2015 (+1.0), 2015-2016 (+1.7*); a net gain of 2.4 per cent or (0.6 per cent per year).
So the rate of growth is also improving, compared to the 13 quarters of negative growth between 2007 - 2011, which resulted in a net contraction of 4.3 per cent. The debt-to-GDP ratio, which climbed to 147 per cent under the JLP, as it grew nominally between 2007-2011, has now shrunk to 125 per cent. Investor confidence is high again and growth is accelerating.
Foreign direct investment inflows are now back up to in excess of US$1 billion over the term, having fell to US$218 million under the JLP’s four years, as investors pump more money into the tourism, energy, BPO, beverage manufacturing, and the construction sectors.
Consequently, with approximately 22,600 new jobs created between October 2014 and October 2015 alone, unemployment has also fallen by 4.5 per cent from the 2013 high of 16.9 to 12.34, still higher than the 9.9 it was in 2007, but lower than the JLP’s 12.7 in 2011.
Inflation is currently at an all-time low of 3.7 per cent, down from more than 11.18 per cent under the JLP, a record as it is the lowest in 48 years; while the net international reserves remains in excess of US$2.43 billion. Interest rates have continued to fall moving from 6.46 per cent in 2011 to 5.25 per cent.
These facts prove beyond a shadow of a doubt that this Administration, empowered by their deeds and not words, has made a compelling case for a second term, and given the distinction with which they have separated themselves from all previous administrations, can without fear of contradiction say we have come too far, sacrificed too much to turn back now!
Gavin C Simpson
gslinkage@gmail.com