Bahamas economy shows resilient growth in first half of 2024: Reports

Bahamas: The Governor of Central Bank John Rolle has reported that the economy of the Bahamas has shown resilient expansion through the first half of 2024. 

He highlighted that despite moderate growth from the rapid recovery post pandemic, the economy remains slightly ahead of its anticipated medium term potential which is also driven by strong tourism gains as well as steady foreign investment. 

He outlined, “The government improved revenue position also benefited from these trends. The outcome also remained positive for employment, including through construction activities.”

Notably, the inflation rate further subsided as the pass through from higher prices on imported goods and services while the monetary and credit trends also showed additional improvement in credit quality and modest firming in the pace of lending to the private sector. 

Rolle also said that the foreign exchange market has also seen positive developments. The central bank reported a 50% increase in the net sale of foreign exchange to the bank, reaching just over $400 million through June 2024. 

Inflow moderation was evident from a more constrained increase in commercial bank purchases of foreign currency from the private sector of about 2.2% during the first half of 2024, compared to a rise of about 3.5% in 2023. 

However, at the same time, demand for foreign exchange seen in commercial bank sales fell by 2.6% over this period, given moderated outlays for oil imports and reduced outflows on credit cards and related transactions. 

This data shows that the island will be witnessing a major boost in its tourism and direct foreign investments throughout the year. Meanwhile, these investments will also benefit the country in the long run as the new investors will bring various new projects to the small island nation of the Caribbean.  

The investments are not only positive for the island’s economy but also for the region as a whole as it will signify that the region is having an increased presence on the world map.