‘Bahamas can sustain 3% economic growth’

NASSAU, BAHAMAS – The Bahamas has the potential to unlock over three percent annual economic growth, according to the Opposition’s finance spokesman.

During his contribution to the Bridge Authority Amendment Bill, Kwasi Thompson, the East Grand Bahama MP noted that the country needs to target this level of growth to accommodate school graduates, achieve higher wages, and improve living standards. Thompson pointed to the Ministry of Finance’s recently released twelve-month FY2023/24 fiscal snapshot, asserting that it revealed “disturbing trends” that underscore a lack of effective financial management and strategic planning.

Thompson said: “You’ve reduced spending on health and education, but the PLP has once again spent their travel budget. You’ve busted your travel budget by 42 percent. The government also seems resigned to this minimal growth level. They seem resigned to this minimal growth level from 14 percent in 2021 and now to 1.1 percent in 2024.”

He added: “We in the FNM are convinced that The Bahamas has the capacity for sustained 3 percent or more economic growth. The country needs to target this level of economic growth to accommodate school graduates and to achieve higher wages and improve standards of living. That’s why it seems as though Bahamians are not feeling the good times you are selling,” said Thompson.

The report he referenced noted that total revenue collections were estimated at $3,075.5 million—a year-over-year increase of $220.1 million (7.7 percent). Key improvements were registered for Value Added Tax ($101.3 million), business licenses ($74.9 million), and departure taxes ($47.1 million). Conversely, non-tax revenue declined by $48.1 million (12.6 percent) to $332.5 million. It was associated with the incidence of lower intakes under miscellaneous and unidentified revenue ($50.4 million) and interest and dividend payments ($13.8 million).

The National Debt stood at $11,652.8 million at the end of June 2024. According to the report, the deficit in the government’s overall position for FY2023/2024 narrowed to an estimated $186.7 million (1.3 percent of GDP) from $534.6 million (3.8 percent of GDP) in the prior year.