The Jamaica debt crisis has retarded the growth and resilience of most of the hard working people of the beautiful island.  The economy of Jamaica is in great difficulties and has been for some time now.  Jamaica is one of the most indebted countries in the world.

Jamaica! the land of  wood and water, the pearl of the Caribbean is an island in a financial crisisthe Jamaica debt crisis

The Reality of the Jamaica Debt Crisis

Most countries worldwide are in a global economic crisis, unfortunately, Jamaica is way down the slope and seems as if we will hit rock bottom first before the well-needed change comes along. Right now the question is being asked by every Jamaican “how can we get out of this plight and start back on the road to recovery”.

Greed along with the current economic conditions has led many people in Jamaica down the road of false reality. This road is paved with gold and has led many astray with thousands losing their lives in the process. This false reality sometimes rewards the victims with instant gratification, quick cash, lavish lifestyle and the promise of an easy life doing little or next to nothing. The truth is most of these avenues never last too long, as usual, you have the exceptional few who make it, majority succeed.

Over the last 30 years, real per capita GDP increased at an average of just one percent per year, making Jamaica one of the slowest growing developing countries in the world.

Contributing Factors to the Jamaica Debt Crisis

the Jamaica debt crisis can be linked to the unemployment and poverty levels which are very high as well as the external current account deficit which has widened. The International Monetary Fund (IMF) noted that low economic growth, declining productivity, and reduced competitiveness were key problems, but also linked these to Jamaica’s “unsustainable debt burden”.

Over the past two decades, the Jamaica debt crisis has caused the economy to be on a steady decline.  Two of the most badly affected industries are farming and manufacturing.  Unemployment has led to a massive rural exodus to the urban areas which is the main reason for the decline in farming.

This mass exodus had led to overcrowding in the cities which has contributed to an increase in crime and the drug trade industry. Scamming has also become a new phenomenon and is rapidly becoming the fastest incoming earning stream.

Like its neighbours across the Caribbean, Jamaica is vulnerable to natural disasters including hurricanes, flooding and the effects of climate change. It is an upper middle-income country but struggles with low growth, high public debt and external shocks which weaken its economy.

The Road Some has Taken because of Jamaica’s Debt Crisis

I know, you can identify some of these avenues or you know someone who has gone down one of these roads:

  • Robbery
  • Illegal drug sale
  • Fraud
  • Scamming
  • Con artist
  • Sex industry
  • Human trafficking
  • Child pornography
  • Cybercrime

And yes, the pursuit of the get-rich-quick industry on the internet. People are scammed daily of their hard-earned cash in an effort to make money.

I am sure you can also make a list of all the other ways that people try to make money the list is endless.

Don’t get me wrong in every one of these industries there are very successful people who are enjoying the benefits of either their labour or the labour of someone else.

Is this something you want to do, does it sound like something that could take you out of your economic slump. I can tell you the temptation is great and some of them are wrapped in very attractive packages.

The Light at the End of the Tunnel to Jamaica’s Debt Crisis

Jamaica's debt crisis.

Jamaica’s GDP grew by an estimated 0.5 percent in 2017, down from 1.4 percent in 2016. The economy is expected to rebound in 2018 with a growth of 1.7 percent. The poverty rate was estimated to have increased to 15.9 percent in 2015, but with a projected declining path over 2018–20. Total employment grew by 2.3 percent in 2017. Unemployment fell to 10.4 percent in October 2017 while youth unemployment also fell by 7 percent to 25.4, the lowest rate since 2007.

Unemployment continued to fall year-on-year through April, which, coupled with robust tourist arrivals growth in recent months.  The trade deficit, however, widened in the January–May period, due to a higher oil import bill and despite strong export growth.
The economy performed relatively well in the first quarter, with the growth of about 1.4%. This has been the best performance since the fourth quarter of 2016. The result in the first quarter was chiefly due to an upsurge in mining and quarrying activity following the resumption of production at the Alpart refinery in the fourth quarter of 2017.
In  July, Moody’s upgraded Jamaica’s credit rating outlook from stable to positive, citing ongoing fiscal consolidation efforts, which have lowered the debt-to-GDP ratio and the interest burden.  Moreover, moving from direct to indirect taxation has widened the tax base and further improved the macroeconomic outlook.

Expert Suggestions and Predictions for a solution to Jamaica’s Debt Crisis

To stabilize the economy, reduce debt and fuel growth, the government is implementing an ambitious reform program that has garnered national and international support. Since 2013, as part of a comprehensive package of support by WB, IMF and IDB, the Bank has provided more than US$510 million of development policy and investment financing in support of private sector-led growth, public sector transformation and building social and climate resilience.

The institutional reforms and efforts to improve the investment climate have started to bear fruit. The country’s credit rating has improved and Jamaican bonds trade at a premium in international markets. Public and publicly guaranteed debt fell to 114 percent of GDP by the end of 2017.

Crime and violence levels remain high emphasizing the need to address issues of youth unemployment, education and social cohesion. Despite progress in maintaining a macro stability and fostering growth, stronger and more resilient economic growth is needed to eliminate poverty and boost shared prosperity.

excerpts from – Index Mundi – Ministry of Finance

My Solution to the Jamaica Debt Crisis

I had been feeling the pinch of all this and had to do something fast so I took to the internet. As they say, you can find the good the bad and the evil online. Fortunately for me, I found something good. I stumbled upon a whole new world (new to me but around for more than 20 years) of internet/online income.

After careful research, I found out that the internet marketing industry is valued at about $62billion. That is a lot of money going around in cyberspace and the industry is expanding daily.

In 2014, when I started my online business, I was sceptical about it. I was fearful of being scammed, the anxiety of entering into the unknown and lack of knowledge. Fast forward 2018, I am now earning an online income and the business is rapidly expanding.

Take a Bold Step Today to Change your Situation

There are many legitimate ways you can earn a decent income online you just have to be patient, get educated and put in the hard work.

So how does that fits into the Jamaica Debt Crisis: let me tell you. I have been earning a steady income online for the past two years and yes I am paid in foreign currency.

That is what Jamaica needs right now to help pay down our massive debt. Can you imagine if more of us were earning a steady income in foreign exchange?

CLICK HERE and sign up with this great program that has been assisting me to realize my dreams

 

 

Categories: Jamaica

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