Fiscal consolidation inevitable in the Caribbean – says IMF

WASHINGTON, CMC – An International Monetary Fund (IMF) working paper says since growth in the current global economic environment is “virtually nonexistent,” significant fiscal consolidation is inevitable in the region.
The paper, dubbed “The Challenges of Fiscal Consolidation and Debt Reduction in the Caribbean,” examines debt dynamics in the Caribbean and discusses policy options for reducing the high debt levels.
Based on empirical studies of factors underlying global large debt reduction episodes, the paper says “important policy lessons” are drawn for the Caribbean.