GDP increases by 2.7%

GDP increases by 2.7%

The country’s gross domestic product (GDP) grew by 2.7 per cent in 2017, according to the latest figures released by the Department of Statistics (DOS).

In a statement, the DOS said, the main industries contributing to this growth in GDP were “construction, wholesale and retail trade, business services of a professional nature, administrative business services and arts.”

Government consumption increased by 12 per cent and household consumption increased by nine per cent, according to the statement, as gross fixed capital (GFC) formation also grew by 13 per cent.

“The imports of goods and services sector, which has a dampening effect on GDP growth, increased by 14 per cent which was due mainly to a 17 per cent growth in imported goods,” the statement said.

“The 2017 annual preliminary results were based on early estimates from major data sources such as the Central Bank, Ministry of Tourism, the Foreign Trade Section of the Department of Statistics, and many others. The GDP is measured in both current market prices and constant 2012 prices.

“The current measure utilizes current price levels and currency values, factoring in inflation and determines the total value of the products and services produced in a particular year. The constant prices takes into account the impact of inflation and is more useful for studying trends in economic growth.”

The DOS said previously published growth patterns leading up to 2016 were revised for several reasons, including the Central Bank of the Bahamas revisions.

Other factors include the Ministry of Tourism’s revision of Tourist Expenditure 2016,  restructuring of government accounts resulting in Government Final Consumption Expenditure, reflecting calendar year growth patterns and aggregated value-added tax (VAT) data.