IMF's Western Hemisphere Department, concluded in a recent paper that a continuation of current policies would endanger the Caribbean's macroeconomic stability.

ECONOMIST: Debt in the Caribbean

"The deficit will be reduced by the cyclical expansion that is now under way, which will absorb spare capacity in the economy, " Charles Collyns, deputy director of the IMF's Western Hemisphere Department, told reporters.

CNN: IMF: U.S. needs to balance budget