Phillips a liability to growth says G2K

The young professional arm of the Jamaica Labour Party, Generation 2000 (G2K) has charged that finance minister, Dr Peter Phillips is a liability to any prospect of growth and stability for the Jamaican economy.

The characterisation follows yesterday’s revision of the Rating Outlook on Jamaica's sovereign ratings to negative from stable by international rating agency, Fitch.

However, Fitch ratings has maintained the short-term foreign currency rating at B.

The agency says Jamaica's ratings balance structural strengths, such as relatively high income per capita and social indicators against continued growth underperformance, high vulnerability to external and confidence shocks and weak public finances and fiscal solvency indicators.

It also says the Outlook revision to Negative reflects Jamaica's rising financing constraints in the context of elevated fiscal and external imbalances.

Following the revision yesterday by Fitch, G2K said Dr Phillips was to be blamed for the slip in the ratings.

G2K president Floyd Green says Dr Phillips had refused to speak frankly with the nation about the sticking points of the International Monetary Fund negotiations thus brewing uncertainty in the market.

He says to compound the problem, Dr Phillips has been unable to outline a strategy to stabilise the economy until an agreement is secured.

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