The Jamaican economy has witnessed a remarkable reduction in the Government’s crowding out of the private sector, as the country’s debt ratio has plummeted from a high of 145 per cent in fiscal 2013/14 to 105 per cent projected for the end of fiscal 2018/19.
A consequence of this reduced crowding out is the reduction in interest rates to historically low levels and increased corporate activity in the local capital markets, as evidenced by higher equity (initial public offerings and preference shares) and debt (corporate bonds) issuance.
As the Jamaican economy continues to evolve in its search for consistently higher levels of growth, the primary role of the local capital markets will be to provide a diversified pool of risk capital to businesses and entrepreneurs to pursue a broader set of growth opportunities.
In this regard, one of the fastest-growing sources of global financing, known as private credit, represents an important source of capital to stimulate economic activity.
Published in the Jamaica Observer
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