* Positive Outlook Foreseen For The Bahamas' EconomyWendy Craigg, Governor of the Central Bank of the Bahamas, predicts that the jurisdiction will sustain positive growth over the next three years, with GDP growth expected to match the 3.5% reportedly recorded for 2005.
According to the Central Bank, this favourable outlook is based on prospects for the US economy, the performance of the tourism industry, high levels of foreign direct investment, and related construction activity.
Presenting remarks at the recent Grand Bahama Business Outlook, the Governor said that in order to sustain positive prospects, the jurisdiction must focus on a number of areas, namely: investments in education and training; improving the medium-term sustainability of the fiscal situation; and finding ways to secure greater efficiency through the use of technology and upgrading the physical infrastructure.
However, Governor Craigg stressed that the reduction of fiscal imbalances is of particular importance, as this will give the Government room to manoeuvre and keep the economic environment stable.
In its latest economic review, the Central Bank reported that the Government’s fiscal deficit had fallen by some 15% during the first half of the 2005-2006 fiscal year. It attributed this in part to continued improvements in revenue collection, as well as buoyant economic conditions.
Speaking at a Business Outlook Seminar in Nassau at the beginning of the year, Minister of State for Finance, Senator James Smith observed that: “It would appear that we may be entering a period of sustained growth and development which can only be under–girded by the expected continued growth in the US Economy, and the continuation of the low inflationary rate of about 2% in The Bahamas."
He added that major macroeconomic indicators over the last year reflect positive trends and that, overall, the Strategic Development Plan for The Bahamas appears to be unfolding as it should.