The Bahamas: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for The Bahamas

International Monetary Fund

No 2025/008, IMF Staff Country Reports from International Monetary Fund

Abstract: The 2024 Article IV Consultation highlights that The Bahamian economy has staged a remarkable recovery since the pandemic, fueled by a strong rebound in tourism. With economic activity back to pre-Hurricane Dorian levels, growth is slowing—expanding by 1.8 percent in H1 2024—constrained in part by limited hotel capacity. Inflation is now modestly negative, but the cost of living remains high. Activity has recovered to its pre-pandemic level and inflation is now modestly negative. Public finances are improving and borrowing costs have declined. Nonetheless, public debt remains high and its short duration represents an important vulnerability. Reducing the limit on central bank advances to the government and adopting new liquidity management tools would help reduce systemic liquidity. Investing in human capital, closing digitalization gaps, relieving capacity constraints in tourism, and reducing crime would help lift long-term growth. Plans to upgrade the electricity grid and increase the share of renewables would, over the medium term, improve the reliability of the electricity supply, boost growth, and reduce emissions.

Keywords: CARTAC CARTAC; Bahamian authorities; revenue-enhancing strategy; CARTAC FAD; energy reform plan; Anti-money laundering and combating the financing of terrorism (AML/CFT); External sector statistics; Caribbean; Global (search for similar items in EconPapers)
Pages: 81
Date: 2025-01-17
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