Prime Minister David Thompson is painting a picture of a grim economic situation, noting that most figures thus far "confirm the expectations of a very difficult year".

Some of the grim figures:

- Output fell by 2.8% - "one of the most pronounced contractions since the 1991-92 recession."

- Unemployment stood at 7.6% at the end of 2008 - "as compared to 6.7% one year earlier."

- Within the banking sector, credit growth was only 0.3% and "non-performing loans are on the rise."

- Debt to government ratio of 339.4% and "the rapid growth in domestic debt is receiving increasing scrutiny" in global markets.

- External debt to government ratio of 124.2% debt to govt ratio  124.2% external debt to govt ratio.

- GDP in the first quarter fell by approximately 2.8 %

- Value-added to the tourism sector fell by 6.2%

- Manufacturing output recorded a 6.6 % decline during the first quarter of 2009.

- Construction registered a 4.6 % decline during the first quarter of 2009.

The one bright spot was that the rate of inflation has slowed, falling from the "peak of 11.2 per cent reached in September 2008... to 7.6 at the end of February 2009."


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