Standard & Poor says debt on rise in Caribbean - Business - JamaicaObserver.com: "A major rating agency says the global financial crisis has had a big impact in the tourism-dependent Caribbean.
Standard & Poor's says in a new report on the Caribbean that economic growth and foreign direct investment has slowed while public debt has increased. It says external public-sector debt for the region rose to 29 per cent of gross domestic product last year, up from 20 per cent in 2008."
Read more: http://www.jamaicaobserver.com/business/Standard--amp--Poor-says-debt-on-rise-in-Caribbean_11529952#ixzz1w3qSmMUW
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  Tourism-dependent Caribbean countries rely heavily on US and European growth. 1/1  |
Caribbean governments increased public-sector debt sharply in response to the financial crisis, to 57 per cent of GDP by the end of 2011, according to the ratings agency.
The rating agency's report also says that Caribbean countries are more vulnerable to external shocks due to low savings rates, persistent account deficits and a high reliance on outside financing.
The debt ratio is over 100 per cent in countries like Jamaica, St Kitts & Nevis, Grenada and Barbados. Several countries have arrangements with the International Monetary Fund to provide economic stability.
Read more: http://www.jamaicaobserver.com/business/Standard--amp--Poor-says-debt-on-rise-in-Caribbean_11529952#ixzz1w3qSmMUW
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