trim its sails in response, according to Shadow Finance Minister Grant Gibbons.

Dr. Gibbons, in a pre-Budget salvo, warned that 2001 was shaping up to be the worst year the Bermuda economy had seen in 20 years.

"There is a definite cooling down of the Bermuda economy,'' he told The Royal Gazette .

The former Finance Minister said some of the signs of the slowdown included: The economy losing nearly $20 million from visitor spending and $50 million from construction projects in the first three quarters of 2000; the slump in the local retail sector; A doubling in bad debt in 2000; and Fears of an economic slowdown in the US.

Dr. Gibbons called on Government to cut spending in the upcoming Budget to cope with the possible economic slump in the United States.

He added a cooling off in the United States economy and stock market could adversely affect international business on the Island, which is all the more important given the weakness of the tourism industry.

"In the face of all this, the Government should be trimming its sails.'' Finance Minister Eugene Cox is due to present his third Budget to the House of Assembly next month.

But it has already been reported that international business will get a tax break when payroll taxes hiked last year are cut back.

Full story: Business, Page 19