Did You Know? Bahamas Has Broken Its Debt “Danger Threshold”

WRONGWAYThis is one of the MOST CRITICAL situations in the country right now. Debt to GDP is a comparison (ratio) of our level of debt to how much money we make. The higher the Debt to GDP ratio, the higher the risk that a country may go into default on its national debt. In our case, it also means the government may be more likely to INCREASE TAXES to try to get more revenue, especially since they won’t cut their spending and the economy is not growing as they projected it would. International agencies have warned The Bahamas not to break the 70% Debt to GDP ratio. As of December 31, we broke it, going to 73.4% according to the Central Bank. Continue reading