KPMG believes that ongoing work on several major construction projects — the new airport terminal, Caroline Bay and the new St Regis hotel — will add investment spending amounting to about 8 per cent of gross domestic product over the next three years.

The professional-services firm made the observation in its Bermuda Budget Snapshot, released today.

KPMG welcomed the Bermuda Government’s collaborative approach in the run-up to last week’s Budget and its desire top shift away from payroll tax as its primary method of raising revenues.

However, it warned that reducing debt must remain a priority and added: “With a debt-to-GDP ratio hovering between 40 per cent and 45 per cent, the Government is in a difficult situation and will be squeezed further if forecasted revenues and costs for 2018-19 prove to be overly optimistic.”

The document is attached on this webpage under the heading of Related Media.