Bermuda’s government has warned that the biggest threat to the territory is its ageing population and declining workforce
A pre-budget report issued by the Ministry of Finance has indicated that the crisis, which has also led to underfunded public sector pension funds and an escalation in healthcare costs, will result in serious medium- and longer-term pressures on public spending and challenges to economic growth.
According to the report, the island’s demographic issues, while not always immediately discernible, remain the single most serious long-term factor to be addressed by the territory and, according to the report, is one that needs to be dealt with with some urgency.
The report also highlighted the fact that Bermuda’s national debt has increased by $2.1 billion since 2009, and will reach approximately $2.64 billion by the end of this financial year, a mere $107 million below the statutory debt ceiling of $2.75 billion. The debt-service cost is $116.5 million which is equivalent to 10.4 cents of every dollar collected by the government.
