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Revenue Improves $50.4 million over Prior Year

Source: Ministry of Finance, The Bahamas 

Date: 16 May 2025

Contact: Financemail@bahamas.gov.bs

The Ministry of Finance is pleased to release its monthly report on Government’s fiscal operations for the month of February 2025, as mandated by the Public Finance Management Act, 2023.

During the review month, revenue receipts totaled $292.9 million, a 20.8 percent improvement from the prior year, with tax revenue higher by $29.8 million at $241.1 million. The performance featured gains of $11.5 million in value-added tax collections to $103.2 million and $16.1 million in taxes on the use and permission to use goods to $45.7 million. Non-tax revenue expanded by $20.7 million to $51.8 million, driven by receipt of dividends and remittances of banking sector fees.

Aggregate expenditure settled at $234.4 million, with the recurrent and capital components at $220.9 million and $13.4 million, respectively. The year-over-year decline was largely associated with the $6.8 million reduction in capital expenditures.

As a result of the above outcomes, the Government’s overall fiscal position for February 2025 posted an estimated surplus of $58.6 million. Financing activities for the month featured an estimated increase in the outstanding debt stock by $28.7 million.

The public is encouraged to visit the national Budget Website (www.bahamasbudget.gov.bs) to view all fiscal reports.

Date: May 9th, 2025 

Contact: TERAHNEWBOLD@BAHAMAS.GOV.BS, CLARICETURNQUEST@BAHAMAS.GOV.BS

The National Accounts Section of the Bahamas National Statistical Institute (formerly the Department of Statistics) announces the release of the 2024 advance estimates of Gross Domestic Product (GDP). These are compiled by both the Production and Expenditure Approaches and available in nominal (current) and real (constant or inflation adjusted) prices.

According to the 2024 annual estimates, economic activity in the Bahamas increased by 3.7% in nominal terms and by 3.4% in real terms when compared to 2023. This real growth was evident in a number of industries, led by Wholesale and Retail Trade, Motor Vehicle Repair and the Construction Industries, which were responsible for the lion’s share. In 2024, the value added created through the production of goods and services in the Bahamian economy, was estimated at $15.8 billion in nominal prices, and $14.1 billion in real prices.

The Production Approach

The Production Approach to GDP, which is derived from the Gross Value Added (GVA) by Industry showed an increase in real growth across most industries. The industries indicating the most substantial increases in 2024 were the following:

• Wholesale, Retail Trade and Motor Vehicle repairs – increased by $206 million (15%). This increase is mainly connected to the growth in household consumption. 
• Construction – increased by $146 million (19%). This industry increased as capital investment within the country continued to grow as evidenced by a rise in the imports of construction materials.
• Information and Communication – increased by $97 million (21%), as implementation and increased use of digital technology expanded in the Bahamian economy.
• Electricity and gas, Water supply and sewerage – increased approximately $64 million (18%) when compared to 2023. This real growth can be mainly attributed to lower fuel costs in 2024

The Expenditure Approach

Gross Domestic Product calculated by the Expenditure Approach (which shows the contribution to the economy of Final Consumption, Investments, Exports and Imports), indicated a real growth in a number of sectors in 2024, primarily reflected in the following components:

• Gross Fixed Capital Formation – showed an increase in 2024 compared to 2023 of 21%. This was led by Building and Infrastructure Sector with an increase of $341 million (16%), followed by Machinery and Transportation Equipment which grew by approximately $291 million (38%).
• Household Final Consumption Expenditure experienced real growth in 2024 of almost $252 million (3%) when compared to 2023. 
• Exports of Goods and Services increased by $287 million (6%) in 2024 compared to 2023. This sector includes the contribution to the economy by Tourists which includes both Stopover and Cruise visitors’ spending and represents the majority of this component.

Revisions to Estimates

As is the practice in other countries, the National Accounts is regularly updated to reflect international best practices and recommendations from real sector experts. These revisions which improved both the accuracy and timeliness of GDP estimates, will be explained in greater detail in the National Accounts 2024 Report.

In keeping with the Institute’s Revision Policy, and to maintain the integrity of the GDP data series, the entire series, with the exception of the base year 2012 nominal, have been revised. This allows for an extended, consistent time series, which promotes proper comparability and analysis of economic developments over time. It also allows for incorporation of corrections, new data sources and recommended methodological changes, including the following: 

• Balance of Payments updates, provided by the Central Bank of The Bahamas
• Tourism Visitor arrivals and expenditure data updates, provided by the Ministry of Tourism 
• External Trade Statistics revisions
• Consumer Price Indices updates
•  Aggregated Value Added Tax data updates 
• The Business Establishment Survey findings for 2015 – 2023

The full National Accounts 2024 Report is scheduled to be released on the Bahamas Government website under (www.statisticsbahamas.gov.bs) within the next thirty days.

Source: OPM Communications, Office of the Prime Minister, The Bahamas

Date: April 08, 2025

Contact: OPMcommunications@bahamas.gov.bs

Moody’s Ratings (Moody’s) has updated its outlook on the Government of The Bahamas’ rating to positive from stable and has affirmed the long-term issuer and senior unsecured ratings at ‘B1’. The ratings action reflects the agency’s positive view on The Bahamas’ ongoing fiscal consolidation efforts, which are expected to decrease borrowing requirements, support debt reduction and strengthen the country’s credit profile over time.

Regarding recent fiscal performance, Moody’s notes that The Bahamas “fiscal or financial strength, including its debt profile, has materially increased,” as the country “has demonstrated meaningful fiscal consolidation over the past two years, with the primary balance shifting to a surplus of 2.9% of GDP in fiscal 2024, from a deficit of 1.4% of GDP in fiscal 2022.” Positive performance is expected to continue, with the agency forecasting expanding primary surpluses at 4.5% of GDP for Fiscal Year 2025/26, driven by “higher revenue collection and discipline on the expenditure side.” Undergirding this are ongoing tax compliance efforts and additional revenue from the Qualified Domestic Minimum Top-Up Tax (“QDMTT”), which on its own is expected to increase total revenues by approximately 1% of GDP beginning in Fiscal Year 2025/26.

The improved fiscal position is expected to decrease gross financing needs and ease liquidity pressures, supported by proactive refinancing operations on the external market and bolstered by positive domestic market dynamics. On external refinancing operations, Moody’s pointed out that “efforts to improve the maturity profile of government debt – through measures such as conducting buybacks and refinancing maturing debt with longer-term debt – would demonstrate the government’s capacity to tap diverse external financing sources and would support the credit profile.” Domestically, “the banking system, which is the primary source of domestic financing, maintains ample liquidity, and has demonstrated a willingness to refinance maturing debt at relatively low borrowing costs.”

Regarding The Bahamas’ policy framework, Moody’s notes that the country’s “strong institutional framework and a stable political system,” as well as its “strong track record of policy predictability, transparency and sound macroeconomic policy” are supportive of The Bahamas’ credit profile. 

Looking ahead, Moody’s suggests that a ratings upgrade could materialize “if the government continues to demonstrate a track record of fiscal consolidation, leading to a sustained reduction in government debt and improvement in debt affordability.” Additional measures, such as the execution of buybacks or refinancing operations on external markets and the continued development of domestic markets, would also support an upgrade