CDB predicts 14 percent GDP contraction, approves $40 million loan

CDB predicts 14 percent GDP contraction, approves $40 million loan

NASSAU, BAHAMAS — The Caribbean Development Bank (CDB) is projecting that The Bahamas’ gross domestic product (GDP) will contract by 14 percent this year with economic growth of at least five percent next year.

The Caribbean Development Bank (CDB) recently announced that it had approved loans of US$40 million to The Bahamas and US$30 million to Saint Lucia to support economic recovery and resilience.

In that announcement, it was noted that both countries are heavily dependent on tourism, which accounts for over 40 percent of GDP in both nations.

“The CDB estimates that GDP will contract by 14 percent in The Bahamas and by almost 19 percent in Saint Lucia in 2020,” the CBD statement noted.

“CDB projections show that recovery is expected to begin as early as in 2021, led by construction and reconstruction activities and a gradual pickup in tourism in both countries. The Bank estimates economic growth of at least 5 percent in both countries next year.”