Monday, November 06, 2017

Public debt of U.S. Territories

Before reading this, try to state the names of the territories. I had trouble naming them all, and there are only five.

The GAO looked at the past fifteen years. Its conclusions:

Puerto Rico's debt grew to 66% of GDP and the territory is now in default. Its financial future is unclear until debt restructuring is complete. 

Guam's debt increased to 44% of GDP. Large unfunded pensions, if unaddressed, may hamper repayment. 

The U.S. Virgin Islands' debt grew to 72% of GDP. It's uncertain if financial reform will let the territory borrow at favorable rates again. 

At 11% and 16% of GDP, respectively, American Samoa and Northern Mariana Islands had lower debt relative to the size of their economies.

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