Williams urged to show path to economic growth in maiden Budget speech
Published:Tuesday | March 11, 2025 | 12:10 AMEdmond Campbell/Senior Staff Reporter
At least two economists are of the view that Fayval Williams, the minister of finance and the public service, should provide a forecast of how the Government intends to steer the country towards economic growth in the wake of two consecutive quarters of negative growth.
Williams, tasked with managing the finance portfolio – the first woman to be appointed in that capacity – will today make her maiden Budget Debate presentation inside Gordon House.
Yesterday, economist Peter-John Gordon said that, with the last two quarters showing disappointing results, the Government has to place focus on reviving the country’s growth prospects.
“There are lots of challenges that we can’t adequately address without growth. Issues of education, health and infrastructure, among other things. The country wants to know what we can expect on that front,” Gordon told The Gleaner.
He argued that the growth agenda should underline everything, noting that the greater the growth the more resources available to the country.
“When growth is stagnant or declining, you have less resources [and] therefore you can do less things,” Gordon observed.
For the fiscal year ending March 2025, the Planning Institute of Jamaica projects real GDP will contract within the range of 0.5 per cent to 1.5 per cent. However, it expects the economy to grow in the March quarter.
He said national security was still a big issue in Jamaica and sufficient resources were needed to be pumped into that area.
The UWI economist said that, while there might be those who view the minister’s presentation through political lenses, he is more interested in what is going to happen in the coming years rather than what could happen in the next few months.
“I am not going to be viewing it through the lens of whether it gives them a leg up or not but, rather, does it lead to increased growth,” he said.
Gordon noted that health, education, security and infrastructure stand out as areas in dire need of increased resources.
He said the state of the nation’s roads affects productivity and, by extension, the growth prospects.
“If you can’t move people and goods around relatively easily and relatively cheaply, then that hinders the prospects of growth,” he added.
Economist Keenan Falconer said a major focus of trying to kick-start growth will have to come from capital expenditure.
“The Government has to use whatever available room it has given the fiscal constraints to demonstrate to the public and show a signal that the national project of fiscal responsibility and maintaining the gains that have been achieved over successive administrations remain firmly a priority of the Government,” Falconer said.