NASSAU, BAHAMAS- A $228 million increase in infrastructure investment, a $188 million rise in government spending and a $107 million gain in exports helped drive economic growth in The Bahamas during 2025, according to the latest Advance Estimates of Gross Domestic Product released by the Bahamas National Statistical Institute.
The report showed real growth across several major sectors, with investment activity, public expenditure and tourism-linked exports emerging as key contributors to economic expansion compared to 2024.
Measured through the Expenditure Approach — which captures the contribution of final consumption, investments, exports and imports — GDP data indicated strong gains in gross fixed capital formation, or investments, which increased by 8 percent year-over-year.
Building and infrastructure investments led that growth, rising approximately $228 million, or 9 percent, reflecting continued spending on construction and development projects. Investment in transport equipment recorded one of the strongest increases, growing by $83 million, or 50 percent compared to the previous year.
The figures point to sustained capital spending as a major driver of economic activity, with infrastructure development continuing to play an important role in broader growth trends.
Government expenditure also expanded significantly. General government final consumption increased by $188 million, or 9 percent, in 2025 compared to 2024. According to the report, government consumption is measured by the sum of costs, including wages and salaries, depreciation, and purchases of goods and services.
Meanwhile, exports of goods and services rose by $107 million, or 2 percent over the same period. The category includes tourism activity — encompassing both stopover and cruise visitor spending — which represents the bulk of total exports and remains a critical pillar of the Bahamian economy.
The advance estimates suggest that investment activity, public sector spending and tourism continued to underpin economic expansion in 2025, with infrastructure projects and visitor-related expenditure remaining central to overall growth.
