Fiscal Accounts On Shaky Footing

BMI View: While the sale of government-owned assets will keep the Bahamas' fiscal accounts stable in the short term, over the longer term rebalancing is required to ensure that this stability can be maintained. For now, the government's commitment to fiscal retrenchment and the slow pick-up in economic growth rates from 2011 should enable some improvement in the accounts, and we expect a deficit of 3.9% of GDP in FY2011, down from 4.3% of GDP in FY2010.

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