Recovering Tourism Sector to Drive Growth in The Bahamas In 2022

• Fitch Solutions forecasts real GDP in the Bahamas will grow by 1.5% in 2021 and 4.8% in 2022 as public health restrictions loosen and the tourism sector recovers.  
• The tourism sector’s recovery in 2022 will drive growth in exports and job creation, which will boost domestic private consumption. 
• A possible fourth wave of COVID-19 cases and elevated public debt levels pose downside risks to the economic recovery. 
• The sovereign is also facing fiscal challenges which has resulted in a recent downgrade in its rating. On November 12, 2021, S&P Global Ratings lowered its long-term foreign and local currency sovereign credit ratings on the Commonwealth of The Bahamas to 'B+' from 'BB-', while at the same time, changing the outlook on the rating to stable from negative. The downgrade reflects the failure of successive governments to implement timely and effective reforms that have weakened public finances, created a high debt burden, and increased funding pressures.

(Source: Fitch Solutions and Standard & Poors)