‘Still Among Leaders’: But Bahamas’ FDI Down 60%

• The Bahamas is “still among the leaders” despite a 60% year-over-year decline in foreign direct investments in 2021 to US$360Mn from US$897Mn in 2020. This was the lowest figure in the last five years, falling well below the $901Mn and $947Mn FDI inflows attracted in 2017 and 2018, respectively, as well as the $611Mn received in 2019. 
• Hubert Edwards, the head of the Organisation for Responsible Governance’s (ORG) economic development committee, stated that while the World Investment Report had disclosed a “dramatic” and “large drop-off” in a key Bahamian economic driver there should be no cause for immediate alarm given the economic effects of the pandemic. 
• Many major investment decisions were placed on hold due to the uncertainty associated with the COVID-19 pandemic. Despite this, The Bahamas remained the third most-popular foreign direct investment (FDI) destination among small island developing states (SIDS) globally - and the leader in the Caribbean – which underlines the attractiveness of this jurisdiction for global capital. 
• Furthermore, although 2021’s $360Mn inflow was the lowest in five years, Mr. Edwards voiced optimism that The Bahamas will soon see a rebound in FDI inflows as economic activity recovers globally and locally.

 (Source: The Tribune & NCBCM Research)