Categorized | National News

Projected Growth Expected for Bahamian Economy

Journal Staff Writer

Despite many international and unpreventable economic issues throughout the world, the
Bahamian economy is still expected to outpace 2022.
Governor of The Central Bank John Rolle made the announcement as he presented the quarterly
economic briefing.
He said these trends are based on the tourism industry.
“The near-term risks to the economy remain concentrated around imported inflation, escalating
geopolitical tensions, and the multiple adverse impacts that rising international interest rates
could have on the financing costs for the public and private sectors. Based on trends in tourism
and the observed level of foreign currency inflows through the private sector, the economy is still
expected to grow at an above average pace in 2023 in the 3-4 percent range,” Mr. Rolle said on
This compares to the majority of the COVID-19 rebound that grew the economy by about 14
percent in 2022.
There has also been an increase in the foreign exchange market.
Mr. Rolle said the foreign exchange markets provide a good indicator of the collective impacts of
tourism, investments and other inflow activities in the economy.
“In this regard, during the first nine months of 2023, total foreign currency inflows through the
banking sector rose just 2.5 percent compared to 2022. The recovery driven improvement in
receipts in the same period in 2022 was 40 percent. In the meantime, the demand for foreign
exchange increased by about 7.1 percent in the first nine months of 2023, compared to
approximately a 30 percent boost in 2022,” he said.
In terms of the general outlook for 2023, the governor said the country is projected to have
continued growth with The Central Bank looking to accommodating more growth in the tourism
This is dependent on the imported risks.
“Nevertheless, there are downside risks that justify caution. Imported inflation could impede the
economy’s ability to retain foreign exchange, while escalated energy costs could make the
tourism product more expensive and less attractive. In addition, the rising interest rates which
push back against inflation in countries overseas could impose higher costs on the government’s
foreign currency debt and could slow the pace of private investments that rely on debt financing.
Throughout these trends are geopolitical tensions from the war in Ukraine and now the Middle

East. In these respects, The Central Bank’s monetary policy posture is therefore cautiously
balanced,” he explained.
Despite that, the country is expected to settle closer in line with its medium-term growth
potential in 2024.

Written by Jones Bahamas

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