Jamaica Roundup: IMF praises economy, SouthCom visit, Local labour protests

IMF commends Jamaica’s economic management

Jamaica has earned high praise from the International Monetary Fund (IMF) for its robust economic management and resilience, following the completion of its 2025 Article IV Consultation. Led by IMF Mission Chief Mauricio Villafuerte, the review team acknowledged Jamaica's significant progress over the last decade in reducing public debt, anchoring inflation, and strengthening its external position. Despite a recent economic dip due to Hurricane Beryl and Tropical Storm Rafael, the IMF believes the economy is on track to rebound. Unemployment has hit a historic low of 3.7%, and inflation remains within the Bank of Jamaica’s target range, the Guardian reports. Public debt is expected to fall to 65% of GDP, the lowest level in 25 years. However, the IMF cautioned that global economic uncertainty and climate-related shocks remain substantial risks. The institution called for continued reforms in public spending efficiency, productivity growth, and foreign exchange flexibility.

US Southern Command visit

Admiral Alvin Holsey, Commander of the United States Southern Command (SouthCom), is visiting Jamaica this week for high-level talks with national defence leaders. This would be his first official trip to the country since taking command in November 2024. According to a statement from the US Embassy in Kingston, the visit is aimed at reinforcing the longstanding security cooperation between the US and Jamaica Admiral Holsey will meet with Vice Admiral Antonette Wemyss-Gorman and other Jamaica Defence Force (JDF) officials to discuss shared security challenges such as transnational crime and illicit trafficking, Jamaica Observer reports. The embassy noted that Jamaica is considered a regional leader in professional military education, and both countries benefit from a historic and strategic partnership rooted in trust, mutual interest, and strong people-to-people connections.

Bank of Jamaica demonetises cotton banknotes

The Bank of Jamaica (BOJ) has officially demonetized its old cotton banknotes, including the $5,000, $1,000, $500, $100, and $50 denominations, as part of its currency modernization initiative. The process took effect on April 1, with the notes set to lose legal tender status on July 1, 2025. While these banknotes will no longer be accepted for transactions after July 1, the BOJ will continue to redeem them at face value indefinitely. The move is intended to enhance the security and durability of Jamaica's banknote stock, and the central bank has encouraged businesses and the public to make the necessary transitions ahead of the deadline.

Opposition blasts government over US trade policy

Opposition Spokesman for Trade and Investment, Anthony Hylton has criticised the Holness Administration for leaving Jamaica “unprepared and exposed” to shifting US trade policies. Hylton expressed concern over the country’s lack of engagement in regional and continental trade efforts, such as the African Continental Free Trade Area and African Export-Import Bank. He warned that new US tariff regimes, such as the across-the-board 10% levy on global and domestic exports, could trigger import-driven inflation and raise the cost of raw materials, intermediate goods, and consumer products in Jamaica and across CARICOM. “The across-the-board 10 percent tariff on global and domestic exports to the United States, as well as the threatened further increase of tariff on specific sectors, will shortly see prices rising on raw materials, intermediate and finished goods to Jamaica and the Caricom region. The prospects for import-driven price inflation loom large as a result of tariff-driven policies,” the Jamaica Observer quotes Hylton. Hylton further accused the administration of abandoning regional cooperation in favor of an isolated approach, arguing that Jamaica has squandered opportunities to lead external trade negotiations within CARICOM.

Security guards protest over low wages

Security guards assigned to the British High Commission have staged a protest outside their employer's headquarters, Hawkeye Electronic Security Limited, rejecting a proposed 5% wage increase as “unacceptable.” Backed by the Union of Clerical, Administrative, and Supervisory Employees (UCASE), the guards argued that ongoing negotiations, spanning over a year and 14 meetings, have failed to produce a reasonable offer, despite rising economic pressures. UCASE General Secretary John Levy highlighted that the guards, trained in diplomatic security, play a crucial role in safeguarding the High Commission and its personnel and deserve fair compensation. Levy criticised the disparity between UK minimum wage standards and what the Jamaican guards are paid. “The minimum wage, the last time I checked, was something like £7 per hour in England, and what they are offering the Jamaican worker maybe amounts to somewhere around £1 or £2. I’m not exactly sure, maybe about £2, so it’s very unreasonable, and I know the British High Commission is not an organisation that treats people unfairly. The history will show that when it comes to workers, that is where a lot of the workers’ rights emanate and we are expecting that the company will have some conversation with whoever engaged them and to come back to the table with an offer in the spirit of free collective bargaining and make an offer to the workers,” he said. He urged Hawkeye to re-engage with the British High Commission to reach a more equitable agreement in the spirit of free collective bargaining.