International Monetary Fund (IMF) to Jamaica representative Gene Leon said on Sunday, Over-consumption is the main reason that's leading Jamaican government current economic woes.
Addressing a forum on promoting Jamaica's small- and medium-sized business, Gene Leon said the country has been consuming far more than it has been able to earn, which leads to the dire unbalance of its Balance of Payment to IMF.
Jamaica used $6.5 billion to import goods, while only earning 1.7 billion from exports in 2012, according to figures released by the Statistical Institute of Jamaica.
He underscored the need for all of the Jamaica's stakeholders to collectively address the issue in order to improve the country's economy strangled by debts that have reached 140 percent of its GDP.The Jamaican government has committed itself to reducing the national debt to 95 percent of GDP in the next seven years by slashing discretionary tax waivers, lowering the public sector wage and reconstructing debt.
IMF announced it has recommended a $958-million loan support package for Jamaica, $200 million more than originally requested by the island.