The Bahamas: Staff Concluding Statement of the 2019 Article IV Mission

• Growth in 2018 was backed by buoyant tourism and construction activity. Real GDP is estimated to have grown by 2.3 percent in 2018, and growth is projected to steady at 2.1 percent in 2019, underpinned by continued growth in the tourism sector.
• The medium-term outlook is positive, but risk factors such as slowdown in the U.S. and other economies, reputational risk in the offshore sector and vulnerability to hurricanes could weigh on growth.
• The effective implementation of the Fiscal Responsibility Law (FRL) will bolster policy credibility and ensure durable gains from fiscal consolidation.
• In the near term, however, there is a need for expenditure restraint to deliver the FY2018/19 target. 

 (Source: IMF)