St Vincent to limit spending says IMF

The International Monetary Fund (IMF) has advised the government of St Vincent and the Grenadines to limit its spending in order to contain the public debt burden.



The Washington-based financial institution says the global economic downturn has adversely affected the island's economy, resulting in a further decline in real Gross Domestic Product (GDP) last year.



It has urged the Ralph Gonsalves administration to contain the fiscal deficit this year as planned, mainly through limiting the sharp rise in capital spending, while protecting spending on the poor.



The IMF says following an average growth of about eight per cent in 2006-2007, financial activity contracted by point 6 percent in 2008 and one per cent in 2009.