The Ministry of Finance released a statement today outlining the findings in the latest report on the country’s fiscal standings by Moody’s Investor Services. The Bahamas’ rating of B1/stable remained unchanged.
According to the Moody’s report the Bahamian economy grew by 2.6% in 2023. The report highlighted the more than twenty percent growth experienced in the accommodations, food and construction industries. Ministry of Finance officials say this follows a growth in gross domestic product (GDP) in 2021 and 2022 at 17% and 14.4% respectively led by tourism. The number off stayover arrivals increased by 17% in 2023 over the previous year achieving 95% of the pre-pandemic levels experienced in 2019.
The report also lauds the stability of the Bahamian currency. It stated, “monetary and macroeconomic policy effectiveness is supported by the long track record of the currency peg, which reflects the Central Bank of The Bahamas’ policy credibility and contributes to macroeconomic stability.”
The Moody’s report was also favorable concerning the government’s fiscal policy framework saying that its has been “responsive to economic shocks, will support fiscal consolidation and a downward trend in government debt ratios.” According to the Ministry of Finance the debt to GDP ratio decreased form 93.4 in 2021 to 82% in 2023. It is expected that debt to GDP will continue to decrease in 2024 and in 2025.
The report noted the transparency demonstrated by the government in the publishing of its quarterly fiscal performance reports, an annual borrowing and debt management plan and an annual fiscal strategy report.
