NASSAU, BAHAMAS- Prime Minister Philip Davis says The Bahamas’ stronger-than-expected economic performance cannot be dismissed as “good luck,” pointing instead to what he described as deliberate policy decisions and record investments that have pushed the country’s real GDP to its highest level in history.
Citing recent data from the Bahamas National Statistical Institute (BNSI), Prime Minister Davis, during his contribution to the debate on the compendium of financial services bills in Parliament on Wednesday, noted that real GDP grew by 3.4 percent in 2024, well above international forecasts of 1.5 to 2 percent.
“This cannot be explained away as ‘good luck’ nor is it the inevitable outcome of post-COVID growth,” Davis said.
He added: “Many other countries with similar tourism and service-based economies have not been so fortunate. Yet, for consecutive years, we have outpaced the predictions of analysts and experts. Our approach to managing and growing our economy has yielded promising results. Our GDP now stands at $14.1 billion in real terms, which is the largest our economy has ever been, exceeding pre-pandemic GDP figures in 2019 by over 1.5 billion. There is nothing inevitable about this level of growth. Instead, what we see is the product of record levels of investment, widespread infrastructural development throughout New Providence and the Family Islands, expanded opportunities for employment and entrepreneurship for Bahamians, and disciplined stewardship of our major industries, including financial services.”
Opposition Shadow Finance Minister Kwasi Thompson has recently questioned whether this growth was being felt by ordinary Bahamians, pointing to what he called a “statistical discrepancy” of $413 million and lingering issues like inflation, stalled public projects, and unpaid government vendors.
Turning to financial services, the Prime Minister noted that the compendium of nine Bills is designed to modernize the sector, meet global standards, and strengthen the country’s compliance with the Financial Action Task Force (FATF) recommendations.
Davis emphasized that The Bahamas had become only the sixth country in the world to achieve “largely compliant” status with all 40 Financial Action Task Force (FATF) recommendations, while also being recently removed from the European Union’s blacklist and, more recently, by France.
“These milestones speak to our unwavering commitment to transparency and integrity,” Davis said. “We are staying ahead of global trends and transforming our sector for long-term competitiveness.”
He outlined key measures in the legislative package, including amendments that would require nominee shareholders to disclose beneficial owners, reduce reporting timeframes to 24 hours, enforce stricter customer due diligence, and allow Bahamian courts to recover criminal assets internationally.
“For the first time, our courts will be able to enforce foreign judgments tied to illicit proceeds,” Davis said. “The criminals of today operate across borders — now our justice system can too.”
The Prime Minister also touted reforms to the Companies and International Business Companies Acts, which will ban nominee directors and improve transparency of shareholdings.
Revisions to trust legislation — including the Trustee Amendment Bill and the Banks and Trust Companies Regulation Amendment Bill — were also laid out, aiming to preserve client confidentiality while enhancing international compliance.
“Our trust framework will strike the right balance between transparency and privacy,” he said. “This is essential for maintaining our global competitiveness.”
He concluded by commending the country’s financial professionals and reiterating that Bahamian talent remains The Bahamas’ “greatest asset” in financial services.
“These nine Bills collectively position us to lead in compliance, transparency, and innovation,” Davis said. “This is about building a system that is modern, efficient, and trusted — not just by the international community, but by our own people.”
