Bahamas experiences growth in January according to Central Bank

The Central Bank of the Bahamas (CBB) says preliminary indications are that during January, the domestic economy sustained its growth momentum, although at a more tempered pace, with economic indicators returning closer to their expected medium-term potential.

In its outlook for the domestic economy, the CBB said that as the economy converges closer to its medium-term growth potential, the domestic economy is anticipated to expand at a moderated pace in 2024, supported by ongoing gains in the tourism industry and other areas of the real sector.

“However, the downside risks to tourism persist, related mainly to exogenous factors, such as geopolitical tensions and heightened global oil prices, which could disrupt travel sector activity.

“Moreover, the resumption in major central banks’ counter-inflation policies could curtail the travel spending capacity of key source market consumers. Nevertheless, new and ongoing foreign investment-led projects are expected to provide stimuli to the construction sector, and by extension, contribute to economic growth,” the CBB said in its “Monthly Economic and Financial Developments (MEFD) January 2024,” report released on Monday.

It said in the labour market, employment conditions are forecasted to improve, with additional job gains concentrated largely in the construction and tourism sectors. In price developments, inflation is projected to continue to trend downward, as improvements in global oil prices persist.

“Nonetheless, upside risks to inflation revolves around uncertainty in global oil prices and supply chain shortages, related to geopolitical tensions in Eastern Europe and the Middle East.”

On the fiscal front, the government’s net financing gap is anticipated to trend further downward. The expected recovery in revenue remains significantly linked to tourism-led improving trends in taxable economic activities.

Source-CMC