Central Bank Projects Bahamian Economy to Grow in Low Two Percent Range in 2024

• The Central Bank of Bahamas predicts economic growth to be in the low 2.0% range, still moderately above the estimate of the economy’s medium-term potential (below 2.0% per annum).
•  In 2023, the Bahamian economy was estimated to have grown in the 4.0% range, a levelling off from the significant post-pandemic recovery of around 14.0% in 2022. This period captured a robust boost in the cruise sector’s contribution, complete occupancy recovery in the stopover sector, and healthy appreciation in average pricing for stopover accommodations among hotels and vacation rental properties.
• In 2024, however, growth is expected to be within the low 2.0% range, still moderately above the estimate of the economy’s medium-term potential. Further, earlier this month, the World Bank revised its 2024 growth projection for The Bahamas down from 2.0% to 1.8%.
• According to Rolle, the Central Bank expects that growth in 2024 and beyond will settle further to more closely resemble The Bahamas’ longer-term potential. However, a period of acceleration could occur after hotel capacity is replenished in New Providence.
• Central Bank Governor John Rolle stated that although the economy has a positive outlook for 2024, enabling more employment creation and continued reduction in the fiscal deficit, downside risks persist from potential headwinds to tourism, particularly if international central banks prolong their fight against inflation. Additionally, travel demand and import inflation remain vulnerable to the harmful effects of conflicts in Europe and the Middle East.

(Source: Eyewitness News)