In a significant development for the nation’s financial standing, Standard & Poor’s (S&P) Global Ratings has upgraded Jamaica’s long-term foreign and local currency sovereign credit ratings from ‘BB-‘ to ‘BB’. This upgrade, announced on September 25, 2025, comes with a positive outlook, signaling continued confidence in Jamaica’s economic management and its path towards investment grade.
A Decade of Fiscal Prudence Recognized
The rating agency’s decision highlights Jamaica’s remarkable adherence to fiscal discipline over the past decade. S&P specifically lauded the country as the sole sovereign among 141 rated entities to consistently achieve an annual primary fiscal surplus exceeding 3% of its Gross Domestic Product (GDP) for ten consecutive years. This sustained performance has been maintained despite significant global and local shocks, including the COVID-19 pandemic and climate-related events.
The upgrade reflects S&P’s assessment of Jamaica’s strengthened institutional and policy frameworks. A broad consensus across the nation’s main political parties, the Jamaica Labour Party (JLP) and the People’s National Party (PNP), on macroeconomic policies focused on debt reduction has been a cornerstone of this stability. This bipartisan commitment has enabled the government to pursue and embed fiscal consolidation strategies effectively.
Driving Towards Debt Reduction Targets
A key factor underpinning the upgrade is Jamaica’s progress in reducing its debt burden. The government is projected to meet, and likely surpass, its legislated debt-to-GDP target of 60.0% or less by March 2028. S&P anticipates that net general government debt will fall below 50% in 2025, settling just under 48%. This trajectory follows a significant reduction from previous peaks, where the debt-to-GDP ratio once exceeded 140%.
The positive outlook from S&P suggests an elevated probability of a further rating upgrade within the next six to eighteen months. This potential improvement hinges on the continued decline of the government’s interest burden and sustained strong fiscal performance. Additionally, an acceleration in economic growth rates, converging with those of similarly developed peers, could also prompt a further upward revision of Jamaica’s creditworthiness.
Implications for Jamaica’s Economy
This ‘BB’ rating, the highest within the speculative-grade tier, moves Jamaica considerably closer to achieving investment-grade status. Such an upgrade is crucial as it significantly enhances the country’s ability to access financing at more favorable terms. Lower borrowing costs translate into substantial long-term savings for the government, freeing up fiscal space for critical investments in public services such as health, education, security, and infrastructure.
Furthermore, an improved credit rating bolsters Jamaica’s attractiveness to foreign direct investment (FDI). This increased investor confidence can stimulate greater economic activity, foster job creation, and contribute to overall economic growth, a key objective for the island nation. The stability demonstrated by Jamaica’s economic policies is now being recognized globally.
Economic Performance and Future Growth
While the upgrade celebrates fiscal strength, S&P also notes that spurring sustained economic growth remains a critical challenge. The agency forecasts a rebound in real GDP growth to 2% in 2025, with a long-term average anticipated between 1% and 2% annually. GDP per capita is projected to reach approximately US$8,500 in 2025. Inflation has moderated significantly, falling within the Bank of Jamaica’s target range, partly due to declining energy and agricultural prices.
Official Acknowledgement
Finance Minister Fayval Williams welcomed the S&P upgrade, emphasizing that it acknowledges the government’s unwavering commitment to fiscal discipline and strategic investments aimed at fostering higher GDP growth and improving the quality of life for Jamaicans. The news of this rating action represents a pivotal moment in Jamaica’s ongoing economic transformation.
This latest credit rating news from S&P Global Ratings underscores Jamaica’s successful navigation of its economic challenges and its commitment to prudent financial management, paving the way for a more robust and prosperous future.