Economist says Sandy may evoke IMF sympathy

Charlene Stuart, Senior Staff Reporter

Economist, Dr Davidson Daway, says Hurricane Sandy might cause the International Monetary Fund (IMF) to be more sympathetic to Jamaica.

Hurricane Sandy made landfall as a category one hurricane on Wednesday afternoon claiming one life and leaving a trail of disaster in eastern parishes.

The government is yet to put a figure to the damage, but the Prime Minister has said Sandy could not have come at a worst time given Jamaica’s financial situation and the status of negotiations with the IMF.

But today Dr Daway had a different view, he says given the IMF’s policy that it will not let developing economies fail, Sandy might cause the international lending agency to approach negotiations with Jamaica differently.

Dr Daway also says Jamaica’s export bill is likely to rise because most of the island’s agro sector has been affected.

Meanwhile, financial analyst, Dennis Chung is suggesting that the government ask the IMF to relax the fiscal targets for Jamaica given the devastating effect Sandy has had on the island.

He estimates that the damage caused by the hurricane will also affect the fiscal budget.

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