Jamaica ranking in the World Economic League Table will fall from 126th this year 2020 to 138th in 2035, according to a new report by a United Kingdom think tank.
Despite the projected fall over the next five years, the annual rate of GDP growth is set to rise at an average of three per cent, The Centre for Economics and Business Research (CEBR) said in an annual report released on Saturday.
However, CEBR said between 2026 and 2035, forecasts show that the average rate of GDP growth will dip slightly to 2.1 per cent.
“This deficit was due to a large extent to the impact of the COVID-19 pandemic, which will have hit tax returns and necessitated higher government spending.”– CEBR report
The CEBR described Jamaica’s current economic position as “in a very tough patch” citing figures that note that the economy is projected to contract by a projected 8.6 per cent in 2020.
While the CEBR notes that the COVID-19 pandemic is in part responsible for the country’s economic troubles, it again cited public sector debt as a key source of concern.
“Public sector debt has become a key source of concern for the economy, threatening to constrain growth in the medium to long term,” read the report.
“The issue of public sector debt is compounded by a fiscal deficit that stood at 3.0 per cent in 2020. This deficit was due to a large extent to the impact of the COVID-19 pandemic, which will have hit tax returns and necessitated higher government spending,” added the report.