July 7, 2016
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Moody’s yesterday warned the Government it will likely miss its target of generating a small Budget surplus by 2020-2021, predicting it will still be running a deficit equal to 1 percent of GDP.
Moody’s is urging further “restraint” in public spending while predicting that the government will miss the 1.8 percent deficit target set by the Fiscal Responsibility Act for 2018-2019.
MOODY’s said yesterday strengthening in The Bahamas’ tourism sector and continued foreign direct investment projects will help sustain growth in the range of 1.5 to two percent over 2018-2019.
The Bahamas’ 2016-2017 fiscal deficit could rise as high as $636 million or 7 per cent of GDP, Moody’s has warned, due to the Christie administration’s pre-election spending binge.
LONG Island MP Loretta Butler-Turner chastised Prime Minister Perry Christie on Friday for his "delusional and incoherent" response to the threat of possible downgrade by rating agency Moody's.
The Bahamas is on the fast track to an economic downgrade.