By Gerrino J. Saunders
Bahama Journal News Editor
With what he described as a “firm and growing confidence” Prime Minister Hon. Philip Davis has declared the country is now stepping into a season of recovery, stability, and renewed belief in the Bahamian economy that has been long overdue, and that the world is taking note.
Mr. Davis cited The Bahamas Debt Conversion Project for Marine Conservation and its international recognition and the benefits it will bring for The Bahamas as the transaction is expected to generate USD $124 million in funding for marine conservation over a 15-year period.
He said, “the transaction represents a major milestone in The Bahamas’ prudent debt management strategy, leveraging innovative blended finance to reduce debt service costs, enhance climate resilience, and advance the country’s ambitious sustainability agenda.”
Mr. Davis said, “confidence is earned, not gifted; and while many looked on with skepticism, some even quietly rooting for failure, our administration held the line, made hard decisions, and focused on fixing what was broken. We did this not for applause, but because our duty demanded it.”
He pointed out his administration’s resolve and encouragement following a recent revision issued by the International Monetary Fund. In its April 2025 World Economic Outlook, the IMF, despite global economic uncertainties, trade disruptions, and inflationary pressures upgraded The Bahamas’ growth projections for 2025 from 1.7 percent to 1.8 percent, and for 2026 from 1.6 percent to 1.7 percent.
The Prime Minister boasted, “in a world where many nations have seen their forecasts downgraded, The Bahamas stands apart. We are among the few countries that have earned an upward revision. This is a marker not only of international recognition but of the clear-eyed, hard-nosed, deliberate economic management we’ve insisted upon.”
Mr. Davis acknowledged that there were some who doubted his administration would be able to turn the economy around as they said the hole was too deep, the institutions too weak and the political courage too rare. “They scoffed at the ambition of our fiscal reforms,” he said. “They questioned the viability of our energy agenda and ridiculed our insistence on national development that is both inclusive and modern. But here we are. The data is clear. The message from global institutions is loud. And the faith being shown in The Bahamas is real.”
The Prime Minister reminded that when his administration assumed office in September, 2021 it inherited a country on the brink, a crushing debt burden, a battered economy, and a governance framework in shambles with the challenges made worse by the COVID-19 Pandemic and Hurricane Dorian in September, 2019.
“We had no time for platitudes,” Mr. Davis said. “The Bahamian people needed action, not slogans, and action we delivered. We returned our country to primary surplus. We laid out and followed through on a fiscal plan that curbed waste, stabilized our borrowing, and re-established discipline in public expenditure. The world took notice.”
He said, “Moody’s, an agency not known for flattery, recently upgraded The Bahamas’ outlook from stable to positive for the first time in nearly 20 years. Their statement recognized that our debt is now falling, our deficit is under control, and our reforms are yielding results.
“Fitch Ratings, in its inaugural assessment, provided a detailed review of our economic architecture and underscored the credibility of our fiscal policy framework,” said the Prime Minister.
Mr. Davis said growing confidence in the Bahamian economy is not limited to credit rating agencies, but is also evident by investment decisions being made by businesses, both domestic and international, and it is also reflected in the fact that The Bahamas capital markets are expanding, that tourism remains strong, and that construction across the archipelago is surging.
The Prime Minister noted that the Minister of Economic Affairs, Hon. Michael Halkitis was in Washington, D.C. this week where he attended the International Monetary Fund (IMF) and World Bank Spring Meetings. There, he engaged directly with global financial institutions, building new partnerships, and reinforcing The Bahamas’ international position as a stable, responsible, and progressive economy.
He said, “these engagements are not ceremonial. They are strategic. They position The Bahamas to access the financing, support, and alliances needed for our future resilience.”
Addressing the critics once again he said, “let us speak honestly about the cynics, the ones who said reform was too hard, who with loud voices and little vision tried to paint our path as reckless. Their forecast? Collapse. Our result? Growth. It is easy to criticize from the bleachers. It is harder to lead from the front. And leadership, especially in times like these, requires a steel spine, a calm mind, and a heart devoted to service.”
In addition to reviving the economy the Prime Minister noted the government is also making transformative investments in energy, healthcare, education, and the digital economy.
Additionally, he said, “no country can thrive with an energy system that is antiquated, unreliable, and expensive. That is why we are carrying out the largest reform of our energy sector in Bahamian history. New solar micro grids, grid modernization, energy storage, and regulatory reforms are already underway. These initiatives will lower costs and reduce outages, but more importantly, they will anchor the next generation of economic growth.”
He said investments in reducing the cost of living, like value added tax reduction on food, targeted subsidies, and price control enforcement have been critical to softening the blow of external price shocks.
However, he said the IMF’s recent report makes one thing clear and that is global uncertainty is likely to persist, from U.S. tariffs to fragile financial markets, stating that the road ahead is not without risks.
He said, “for the first time in a generation, The Bahamas enters such uncertainty from a position of growing strength; we are no longer pleading our case, we are proving it. We are no longer waiting for help, we are building systems that empower Bahamians to help themselves. This is the essence of confidence, not arrogance, but confidence forged in discipline, data, and delivery.”
In conclusion the Prime Minister said, “let me end with a message to those who still whisper doubts, who still cling to pessimism as a strategy: You said it couldn’t be done. But it is being done. You said we couldn’t earn the trust of the world. But trust is being extended. You said we had no plan. But it is clear now that not only do we have a plan — we are executing it. There is much work to do. But we are no longer catching up. We are pressing ahead.”
Mr. Davis encouraged Bahamians to hold firm as the country is moving in the right direction, and the world is taking note.
