Financial Market Brief Feb 5 2016
One of the consequences of the 2008 global financial crisis was a substantial accumulation of public debt by governments in industrialized countries, including the Bahamas. To date, fixing public finances remains a challenge for these countries. Over the past seven years, the Bahamas has seen a sustained deterioration in its debt ratios. With the government continuously running deficits, the Bahamas’ total debt share will certainly continue to increase. In total, the Bahamas now owes $6.51B, which is equivalent to 76.51% of GDP. Less than a decade ago, in 2008, the debt to GDP ratio stood at a healthy 38.96%. This deterioration in public finances can be attributed to an equally substantial increase in the GFS deficit to GDP from 1.83% in 2008 to 4.49% in 2015, after peaking at 6.48% in 2013. Weekly_Market_Recap_5-Feb-2016 Click here for full Weekly Market Recap

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