BEYOND RESTORATION: Economic recovery to 2019 levels ‘not enough’, says Central Bank governor

Rolle hints at difficult changes needed to improve economy

NASSAU, BAHAMAS — The Bahamian economy will continue its recovery in 2022, according to Central Bank Governor John Rolle, who noted that getting back to 2019 levels, however, “is not enough”.

Rolle, who was addressing the 2022 Bahamas Business Outlook, noted that amid ongoing recovery, this nation is benefiting most from the resumption of activity in the tourism sector and foreign direct investment activities. 

Getting back to 2019 is not enough.

– Central Bank Governor John Rolle

“Getting back to 2019 is not enough,” Rolle noted.

“In many cases, we are making whole persons who were participating in the economy in 2019, but people have continued to join the labor force.

“Some of what is ahead of us is also ensuring that the economy is able to grow to absorb those new entrants.”

Going forward, Rolle said changes, some of which will be very difficult, are needed to ensure the economy is more agile.

He noted that some of those changes and reforms include acceleration of the economy’s digital transformation and addressing technology and infrastructure gaps.

Rolle also said the regulator will focus on how it can streamline the country’s exchange control regime to ensure it is less of a hindrance to investment activity. 

“From the Central Bank’s point of view, our focus will be on how we can streamline exchange control,” said Rolle.

“There is an administrative side of exchange control that is different from the policy side, that relates to how we protect the value of our Bahamian dollar.

“We are going to focus a lot more on making certain that insofar as the investment regime is concerned, exchange control is less and less of a hindrance to get investment activity to take place.”