Moody's bumped up Jamaica's credit rating, moving it to Ba3 from B1. The agency cited over a decade of stronger fiscal discipline and better policies that cut government debt dramatically. They noted a nearly forty percent drop in debt relative to the overall economy since 2020, even with a recent hurricane causing a temporary setback.
The agency expects Jamaica to return to budget surpluses after short-term recovery spending, projecting that debt will peak before falling again. They forecast a small economic contraction this year due to storm impacts, followed by stagnant growth. The government's access to catastrophe insurance, worth about six hundred sixty million dollars, was highlighted as a key buffer that limits expensive borrowing after disasters, supporting the country's credit profile. The outlook is now stable.
The agency expects Jamaica to return to budget surpluses after short-term recovery spending, projecting that debt will peak before falling again. They forecast a small economic contraction this year due to storm impacts, followed by stagnant growth. The government's access to catastrophe insurance, worth about six hundred sixty million dollars, was highlighted as a key buffer that limits expensive borrowing after disasters, supporting the country's credit profile. The outlook is now stable.
