NASSAU, BAHAMAS — The Bahamas is one of several in the region expected to see double-digit increases in public debt ratios through 2026 the Inter-American Development Bank (IDB) has noted.
The IDB in its Caribbean quarterly economic bulletin for August noted that monitoring the pandemic’s lasting impact on public balance sheets is a key concern.
“As with other variables, uncertainty remains with regard to how both the numerator and denominators of public debt-to-GDP ratios will evolve. But the IMF’s April 2021 World Economic Outlook projections suggest that there will be long- lasting implications for many countries. For example, only 4 of the 12 Caribbean economies considered for which projections are available are currently projected to see debt levels fall below their end- 2019 levels by end -2026. Of these, Jamaica is expected to see the largest consolidation— of over 30 percentage points of GDP 5 —while others like Barbados, Dominica, and Grenada are also projected to achieve appreciable improvements.”
The IDB added: “For several Caribbean economies, prospects for consolidation remain uncertain, while current estimates envision double-digit increases in public debt ratios through 2026 for several economies, including The Bahamas, St. Lucia, Suriname, St.Vincent, and the Grenadines, and Trinidad and Tobago.