World Bank forecast Bahamas’ 2023 GDP growth at 4.3 percent

World Bank forecast Bahamas’ 2023 GDP growth at 4.3 percent

NASSAU, BAHAMAS — The World Bank has revised the country’s real GDP growth forecast for 2023 upward slightly to 4.3 percent, while adjusting its 2024 projection downward by one percent.

The World Bank in its Latin America and Caribbean Economic Review is forecasting GDP growth of 4.3 percent for The Bahamas this year, up from its previous 4.1 percent forecast. The World Bank is also forecasting real GDP growth of two percent in 2024, down from its initial forecast of three percent and 1.9 percent in 2025.

In its review, the World Bank noted that the Latin America and the Caribbean (LAC) region has proved to be relatively resilient in the face of increased debt stress, stubborn inflation, and uncertainty arising from the Russian invasion of Ukraine. 

“However, headwinds have picked up, and the 2023 outlook is substantially bleaker than 2022,” the report stated. “Global uncertainty is rising, and while the world may want to move on from COVID-19, new variants and diseases will remain a threat. Strengthening resilience, both on the health and macroeconomic fronts, will be paramount.

“Progress remains pending in both vaccination coverage and health system preparedness, while the institutionality of macroeconomic policy in some countries is being questioned.”

The World Bank also noted that although numerous global factors can explain the very modest 2023 growth rates, the forecasts going forward predict “the same lackluster pace of the past two decades,” which remains insufficient to reduce poverty, promote inclusion, and defuse social tensions.