IMF Executive Board Concludes 2020 Article IV Consultation with The Bahamas

• IMF Executive Directors noted in the most recent consultation on The Bahamas that the recovery to pre-pandemic levels will likely take years and downside risks loom large, reflecting the uncertain evolution of the pandemic and the country’s vulnerability to natural disasters.
• Directors agreed that the near-term priority is to save lives and livelihoods and postponing the achievement of the public debt target by another two years in response to the pandemic is appropriate.
• However, putting debt on a clear downward path over the medium‑term and rebuilding buffers will require significant fiscal effort.
• Directors called for tax policy and administration reforms and expenditure prioritization to ensure a robust and equitable consolidation once the pandemic abates.

(Source: IMF)