Bahamas projected to grow by 8% in 2022 – CARICOM Business
The Bahamas is experiencing a tourism-led rebound. The economy expanded by 13.7% in 2021, as net tourism receipts tripled relative to 2020. The strong recovery is expected to continue in 2022, with real GDP growth projected at 8%.
That’s the word from the IMF upon conclusion of its recent Article IV consultation. The Fund projects that average inflation will increase to 6¾ percent in 2022 and to only gradually decrease as supply chain constraints wane. The fiscal deficit is expected to halve this year, to about 6¾% of GDP. The authorities plan to achieve a medium-term fiscal surplus of 1½ percent of GDP, mainly through tax collection enhancements to reduce public debt to the target of 50% over the next ten years from 103.3% in 2021.
The current account deficit improved to 19.7% in 2021 in line with the tourism recovery but is expected to remain elevated in the near-term given import price pressures. The NIR is estimated US$2,434 million (covering 4.9 months of good and services imports).
Extract from the CARICOM BUSINESS Newsletter, Vol 5 No. 20
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