Most countries have debt and seek to have a sustainable debt because this allows them to be able to meet all current and future payment obligations without any financial assistance. Debt is considered sustainable when a country’s Debt-to-GDP ratio does not exceed 70 percent. At some point in time, The Bahamas had a sustainable debt level, and was able to maintain this level through Tourism. However, recent disasters in the past few years has made it difficult to maintain. The affects of natural disasters and the COVID-19 pandemic has now pushed The Bahamas to an unsustainable debt level. To help The Bahamas return to its level of sustainability, past and present fiscal strategies, debt to GDP ratio and ways to improve their position post COVID-19 will be explored to determine which will have the best outcome.
