BY DESTINY JOHNSON

The Bahamas has remained a stable B+ rating on the Standard and Poor’s (S&P)
Global Business Intelligence Rating Review.
Moody’s credit ratings also issued a report maintaining the country’s stable B1 rating.
Minister of Economic Development, Senator Michael Halkitis said this proves the
great economic recovery for the country.
“I think what we take away from both reports is an acknowledgment of the strength of
the economic recovery in the Bahamas post COVID, recovering very strong, an
acknowledgment of the improved fiscal position, meaning, lower deficits, lower
amounts of borrowing, as you would recall this year, we are only slated to borrow 45
million dollars in new borrowings in this budget,” he said.
“So lower borrowings, [and] strong external reserves. So those three things taken
together; strong economic growth, improved fiscal position, strong reserves are very,
very, positive signs. And we have done this in an environment of no new taxes on the
Bahamians,” Senator Halkitis said.
The reports also stated some challenges the country is facing that is hindering
economic growth. Senator Halkitis said these challenges are affected by international
factors.
“The challenges that we face are, in terms of the global economic environment, which
has brought on inflation, that is kind of stubborn. Now you see, recently, we have
some political turmoil going on right to the north of us and as well [and] the continued
conflict in, in Europe.
“So overall, positive reports.
“Of course, we do not rest on those things, there’s a lot of work still left to be done,
but overall, we are optimistic, but cautiously optimistic, because as you know, we
have two months left in hurricane season. We don’t know the direction of the conflict
in Ukraine, and now we have some political developments in the EU, so that might
affect their economy.”
The Economic Minister asserted that these reports signify The Bahamas is on the right
track, but we must remain vigilant throughout the rest of the year.