NASSAU, Bahamas, CMC—The Bahamas authorities has welcomed the newest report from the US-based world credit score rankings company Commonplace & Poors (S&P), which acknowledged the nation’s “sturdy” restoration and discount within the fiscal deficit.
S&P, in its evaluation, projected that Bahamian financial output, or gross home product (GDP), will develop by 1.8 p.c in 2024, barely decrease than the two.3 p.c projected by the Worldwide Financial Fund (IMF) in its most up-to-date Article IV session and the Bahamian Central Financial institution, which is predicting related progress above two p.c.
The US-based ranking company maintained The Bahamas’ current ‘B+’ long-term credit standing with a “steady” outlook. It additionally credited a “sturdy restoration” post-COVID and the federal government’s fiscal consolidation efforts, slashing the deficit and containing debt.
However Shadow Finance Minister J. Kwasi Thompson mentioned the opposition is “very involved” in regards to the report, noting that S&P mentioned it expects the Bahamian economic system to sluggish to 1.8 p.c in 2024, highlighting the nation’s “below-average long-term progress efficiency in contrast with that of others at an analogous stage of improvement.”
Thompson mentioned the company offered a “considerably bleak story of the financial trajectory of The Bahamas.”
Nonetheless, Prime Minister Philip Davis mentioned the debt burden’s containment and the federal government’s new vitality reforms supported S&P’s choice “to affirm our nation’s credit score rankings and to designate the outlook as steady.
“The report comes three years into our time period once we’re honoring the Bahamian folks for the way far we’ve come collectively whereas recognizing there’s a lot work but to be executed. After we entered workplace, the nation was in disaster.
“The mishandling of the pandemic meant our nation’s well being and financial outcomes lagged behind these of different nations within the area. Our nationwide debt had elevated by US$2.4 billion in simply two years,” he added.
Davis mentioned that everybody understood how grim and severe the scenario was, and Bahamians feared a serious improve in value-added tax (VAT) and even a forex devaluation. He mentioned Bahamian companies had been affected by misguided lockdowns and curfews, hospitals had been in dire straits, and faculties had been closed and in disrepair.
However he mentioned his administration has been in a position to flip across the scenario, and there’s nonetheless way more work.
“A world inflation disaster has hit our Bahamian households laborious. There aren’t any simple solutions or fast fixes, so we’re taking over our nation’s hardest issues,” Prime Minister Davis mentioned, including that “we’re implementing our nation’s first nationwide vitality reforms, upgrading our electrical energy grid and bringing solar energy and pure fuel to our islands.”
Davis mentioned that the federal government understands that complete, nationwide reform of this sector is the one option to scale back costs and make electrical energy extra dependable, “each important to serving to Bahamian households and companies and supporting the dynamic, inclusive financial progress we all know our nation is able to.”
He mentioned that the nation is constructing and strengthening partnerships internationally, strengthening borders, and advocating for insurance policies that assist small island states just like the Bahamas promote alternatives for Bahamians.
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