Financial Market Brief Mar 11 2016
On Monday, 7th March 2016, the Prime Minister of the Bahamas and Minister of Finance presented his 2015/16 mid-year budget statement. Though scant on statistics, the prime minister stated that the government’s medium-term fiscal consolidation plan, implemented three years ago, has to date been successful. According to the Minister of Finance in his 2013/14 budget communication, the fiscal objectives of this medium-term plan are as follows: (1) To eradicate both the deficit on the Recurrent Account and the GFS Deficit by 2015/16; (2) Eliminate the primary deficit by 2014/15, which the government feels will reverse the upward trend in the debt to GDP ratio; (3) Return government debt to a level in the area of 50% of GDP by 2016/17, as opposed to a level approaching 70%. Following the implementation of its medium-term fiscal consolidation plan, the government has made some progress on the revenue and deficit fronts. However, there still remains a long way to go to fix the country’s fragile public finances, which have deteriorated over the years due largely to the financial crisis that led to a global and local recession. Weekly_Market_Recap_11-Mar-2016 Click here for full Weekly Market Recap

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