NASSAU, BAHAMAS — The Opposition has accused the government of failing to execute a strategy for comprehensive economic growth, which has led to the stalling of the post-pandemic economic rebound.
Opposition Shadow Finance Minister Kwasi Thompson said in a statement that The Bahamas urgently requires a comprehensive plan to enhance economic growth and responsible public expenditure management.
“The Opposition notes with concern the report issued last week by the Bahamas National Statistical Institute (BNSI), providing the government’s official Gross Domestic Product (GDP) outcome for the calendar year 2023. According to the BNSI, the country’s economy grew by 2.6 percent in real terms in 2023, significantly below the anticipated 4.3 percent annual growth rate for the same period, as announced by the Prime Minister in his recent mid-term budget report in late February,” said Thompson.
He further highlighted that the Opposition had previously warned the government, as early as last June during the budget exercise, that its economic growth projections for fiscal year 2023/2024 were unrealistic.
“The Leader of the Opposition at the time pointed out that the World Bank, among others, had signaled that global economic growth forecasts did not support the government’s overly optimistic forecasts. This was especially evident as the Administration has thus far failed to establish and implement a sound fiscal and economic plan for the country. Additionally, the absence of the Fiscal Responsibility Council due to the Government’s irresponsible behavior is concerning,” said Thompson.
He argued that the Davis Administration’s failure to implement a coherent strategy for economic growth has placed the country back into a low growth/no growth economic trajectory, causing the robust economic rebound from the pandemic to stall.
“The government’s actions have imposed bureaucratic burdens and unreasonable requirements on small and large Bahamian businesses, making it harder, not easier, to conduct business in The Bahamas. These factors have significantly contributed to the slower-than-expected economic growth in 2023 and will continue to impede prospects this year and beyond. Moreover, the failure to meet anticipated economic growth targets will result in lower government revenue intake than expected, explaining the current shortfall in revenue for the fiscal year. Additionally, the government’s reluctance to curb extravagant spending will lead to a much larger budget deficit than the approved $131 million sum, as predicted by us and others,” said Thompson.
Thompson contended that The Bahamas urgently requires a comprehensive plan to enhance economic growth prospects and “responsible public expenditure management that allocates scarce resources to essential priorities rather than frivolous and indulgent spending.”
