Bahamas’ National Debt Just Under Economy’s Size at 98.4%

• The Bahamas’ national debt was just a few percentage points shy of the size of the economy at the end of September 2021 after increasing to almost $10.5Bn over the previous three months, it was revealed yesterday. 
• The Central Bank’s 2021 third-quarter review revealed that the debt expanded by a net $132.2Mn, or 1.3 percent, during that period to take the Government’s total debt - both its direct liabilities and those guaranteed on behalf of state-owned agencies - to a new high of $10.488Bn. 
• However, the slower pace of debt increase, coupled with increased economic activity, as The Bahamas continued its post-COVID re-opening, grew gross domestic product (GDP) just enough to ensure the latter was marginally bigger than the national debt.  
• The Bahamas’ debt-to-GDP ratio dropped from 100.4 percent at the end-June 2021 to 98.4 percent some three months later, according to the Central Bank. However, it is still at an elevated level that continues to give the Government and many citizens much cause for concern. “The national debt, inclusive of contingent liabilities, expanded by $132.2Mn (1.3 percent) over the three months, and by $1.141Bn (12.2 percent) on an annual basis to $10.488Bn,” the Central Bank report said.

 

(Source: The Tribune)