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The truth is, the PNP government has not improved on the per capita GDP
figures. The PNP government has not delivered economic growth. The PNP
government has not appreciably reduced the debt-to-GDP since it took
over from the Jamaica Labour Party.
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So what has the PNP administration been doing? The PNP government has
simply been cleaning up the mess it made of the economy in the first 17
months of coming to office in December 2011 when it promised to get a
better IMF deal in a matter of weeks. When it did not happen, confidence
flew out the window. The economy fell into several quarters of decline,
inflation climbed and the NIR was cut in half.
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That is what the PNP government has been trying to restore. Where the
economy is now is no better than where the JLP left it after multiple years
of gut wrenching austerity measures. Where is the improvement?
The Depreciating Currency – Impact on the Debt
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You know Mr. Speaker, the debt-to-GDP target has been a difficult target
for the government because of the havoc the depreciating currency has on
the mountain of debt. Between the end of March 2014 and the end of
December 2014, depreciation of the currency added $54.8 billion to the
debt stock. For fiscal 2013/14, depreciation has added $108.0 billion.
When added together, this is a huge number for which we the taxpayers
must bear the additional interest cost. It hurts when you consider that this
is money which could have gone into providing better healthcare, better
educational outcomes and training for the young men and women
languishing on the street corners. It could have gone into providing early
childhood care for Jamaica’s children. It is a shame, Mr Speaker.
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Approximately 61% of the total public debt is denominated in foreign
currency. This is almost 10 percentage points higher than where the JLP
government left it. For this reason alone, we need to maintain a stable
exchange rate or the debt will continue to spiral and local investors will