NASSAU, BAHAMAS: Opposition finance spokesman J. Kwasi Thompson says Fitch’s projection that the Government missed its budgeted fiscal surplus confirms warnings previously raised by the Opposition and the Fiscal Responsibility Council over the state of the country’s finances.
Thompson, responding to the ratings agency’s report released last week, pointed specifically to Fitch’s expectation of a 0.5 percent deficit instead of the Government’s budgeted 0.5 percent surplus.
“The latest Fitch report confirms what the Opposition and Fiscal Responsibility Council had already made clear, the Government’s promised surplus was slipping out of reach,” Thompson said.
“We are therefore not surprised that Fitch now expects a 0.5% deficit instead of the budgeted 0.5% surplus.”
Thompson said the warning signs were evident after the first nine months of the fiscal year, when the Government still needed approximately $1.54 billion in revenue over the remaining three months.
He noted that the Government subsequently increased planned spending by approximately $239 million while also raising its revenue projection by $196.5 million.
The Fiscal Responsibility Council had also questioned the revisions.
“Government was spending more while failing to collect what it promised and the surplus has disappeared,” Thompson said.
“This was not a surprise, it was a fiscal warning that the Government chose not to heed.”
The Opposition finance spokesman also raised concerns over the country’s economic performance, pointing to Fitch’s report that the Bahamian economy contracted by 1.4 percent in the final quarter of 2025 — the first quarterly contraction since 2020.
Fitch is now forecasting economic growth of 1.8 percent in 2026, down from 3.8 percent in 2025.
“This dramatic loss of economic momentum demands an explanation from the Government,” Thompson said.
He also pointed to inflation accelerating to 4.2 percent in the second quarter of 2026, arguing that Bahamian households continue to face pressure from food, electricity, gasoline and other living costs.
“The economy is slowing while the cost of living is rising,” Thompson said.
“Government cannot simply point to headline economic numbers and tell Bahamians things are getting better when too many families are experiencing something very different.”
Thompson also took aim at the economic benefits being generated by the country’s record tourism arrivals.
According to his statement, Fitch reported that arrivals increased by 14.8 percent, but cruise passengers now account for 84 percent of total arrivals. He noted that Fitch warned that reliance on the less lucrative cruise market reduces the economic and fiscal benefits generated by tourism.
“That should be a wake-up call,” Thompson said.
“We cannot boast about record arrivals while Bahamian families struggle and too much of the tourism dollar passes through our economy without reaching our people.”
He called for greater Bahamian ownership, opportunities, training and innovation in the tourism sector to ensure that increased visitor arrivals translate into greater economic benefits for Bahamians.
“The measure of tourism’s success cannot simply be how many visitors come to The Bahamas—it must be how much Bahamians benefit when they do,” Thompson said.
Thompson argued that the Government’s economic policies should ultimately be measured against the financial circumstances of ordinary Bahamians.
“Bahamians live in the real economy. They feel it at the food store, at the gas pump, in their electricity bills and in their paychecks,” he said.
“The Government’s economic policy must therefore be judged by a simple test: are Bahamians better able to afford their lives, build wealth and create a better future for their families?”
He called on the Government to focus on easing the cost-of-living burden, creating more opportunities for Bahamians and ensuring economic growth reaches those who need it most.
“Our people need an economy that works for them,” Thompson said.
