NASSAU, BAHAMAS — The Opposition is again expressing concerns about the Bahamian economy’s fiscal trajectory and growth prospects, as the World Bank recently reduced the country’s economic growth forecast for 2024 to 1.8 percent.
East Grand Bahama MP and Opposition Shadow Finance Minister Kwasi Thompson, in a statement, questioned what the downgrade in the economic growth forecast means for the government’s revenue forecast.
“The current budget anticipated a substantial growth in revenue driven by a projected robust 5.5 percent economic growth over the 2023/2024 fiscal year. A slower-than-expected growth in the economy will translate to a smaller bump in government revenue. Again, we point out that this will require budgetary adjustments,” Thompson noted.
“We have already told the government to heed the analysis of international and domestic commentators and proactively adjust the budget to avoid a spike in the deficit and greater than projected debts. Bahamians should not have to wait until the February mid-term budget statement or May budget speech to learn that budget adjustments will be necessary when the government has known that its budget performance has been off for some months now.”
Thompson added that while the rest of the Caribbean is poised to grow on average at 4.1 percent according to the World Bank report, the Bahamas’ growth rate is pegged at less than half of that at 1.8 percent.
He suggested several things the Davis administration can do to improve the county’s economic growth prospects substantially.
“We implore them to quickly implement the BahamasInvest one-stop shop for Bahamian and foreign investments; coming into office, the PLP found a plan to implement Bahamas Invest already advanced. Two years later, we see no evidence of its implementation,” he said.
“We call on the government to reverse the many bureaucratic hurdles it has put in place since coming back to office with all the increased reporting, increased taxes, and other impediments. This government scarcely mentions “ease of doing business” and their actions every day show their lack of focus.
“The government must focus on growing the economy by removing bureaucracy, making it easier to do business, and enhancing the digital transformation left in place by the FNM.”
Thompson said the Opposition is also calling on the government to honor its pledge to provide $50 million in support for Bahamian entrepreneurs and small businesses.
“This injection will have the positive effect of expanding and adding to economic growth. While there has been an increase in support over recent months, the sums are still nowhere close to the $50 million annual commitment. By providing critical capital to those in need, the government will boost the economic growth prospects substantially while empowering Bahamians as owners within the economy,” said Thompson.
