The Bahamas is celebrating a significant milestone with the recent report from Standard & Poors (S&P), a global credit ratings agency based in the United States. The report recognized the country’s remarkable recovery and the reduction in the fiscal deficit, welcoming positive developments in the Bahamian economy.
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Economic Growth Projections:
- S&P’s analysis forecasts a GDP growth rate of 1.8% in 2024 for The Bahamas. This projection, while slightly lower than the 2.3% estimated by the IMF in its latest consultation, is still an encouraging sign of economic progress. The Bahamian Central Bank also anticipates growth above two percent, reflecting confidence in the country’s economic trajectory.
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Credit Rating and Outlook:
- Standard & Poors affirmed The Bahamas’ current ‘B+’ long-term credit rating with a stable outlook. The agency acknowledged the country’s strong recovery from the impact of COVID-19 and applauded the government’s efforts in fiscal consolidation, leading to a reduction in the deficit and debt containment.
- Concerns and Critiques:
- Despite the positive assessment, Shadow finance minister J. Kwasi Thompson expressed apprehension regarding S&P’s projection of a slowdown to 1.8% growth in 2024. The agency highlighted The Bahamas’ below-average long-term growth performance compared to countries at a similar level of development.
Prime Minister Philip Davis responded to these concerns by emphasizing the progress made by his administration in addressing the economic challenges faced by the country. He acknowledged the past struggles, including the increase in national debt and the adverse impacts of the pandemic on health and economic outcomes.
As the government continues to navigate through the challenges, Prime Minister Davis emphasized the implementation of energy reforms, focusing on upgrading the electricity grid and introducing renewable energy sources like solar power and natural gas. He stressed the importance of comprehensive reforms in the energy sector to reduce costs and enhance reliability, benefiting both families and businesses in The Bahamas.
In conclusion, The Bahamas is on a path of recovery and transformation, with a commitment to overcoming obstacles and building a stronger, more resilient economy. By fostering partnerships and implementing strategic policies, the country aims to create opportunities for its citizens and promote sustainable growth for the future.
