Bahamas economy grows 2.6%

The Bahamas National Statistical Institute, BNSI, reported a 2.6 per cent increase in economic activity in The Bahamas in 2023, marking a return to pre-pandemic growth levels.

Real gross domestic product increased from US$12.5 billion in 2022 to US$12.83 billion, the BNSI reported.

“According to the 2023 annual estimates, economic activity in The Bahamas increased significantly by 9.2 per cent in nominal terms and by 2.6 per cent in real terms as business activity experienced modest gains,” said the agency.

The nominal or market value of the economy was more than US$14 billion.

“When compared to 2022, the majority of industries showed marginal growth, while tourism related industries experienced sizeable growth. In 2023, the total value of goods and services produced in the Bahamian economy was estimated at US$14.3 billion in nominal prices, and US$12.8 billion in real prices,” the BNSI said in a statement.

During the apex year of the pandemic, 2020, The Bahamian economy contracted by 21.42 per cent. However, the economy had softened before that, having experienced a contraction of 1.36 per cent, largely due to the impact of Hurricane Dorian.

The growth achieved last year was more in keeping with the 2.63 per cent expansion seen in 2018 and 2.72 per cent in 2017.

The BNSI said last year’s recovery was led by accommodation and food services, which expanded by 26 per cent year on year , adding that “this growth is directly connected to the increase in tourism arrivals.”

Air and cruise tourist arrivals improved by 24 per cent to 9.7 million, compared with 7.8 million visitors in 2022.

The construction industry grew by 22 per cent, in 2023 as a result of increased capital investment in the country, transportation and storage spiked by 16 per cent, and household consumption increased by eight per cent.

“Food and non-alcoholic beverages was responsible for the lion’s share of the increased household expenditure, with the rising cost of these expenditures resulting in the gap between nominal and real growth in this grouping,” said BNSI.

Export performance was mixed, but ended up rising by six per cent.

“Exports of goods and services increased by US$200 million (five per cent) over 2022. This growth was led by tourism expenditure which represents the bulk of exports of services,” BNSI said, adding “the tourist arrivals and the resulting spending within the economy offset the reduction of exports of goods.”

CMC