Standard & Poors Affirms Bahamas’ Credit Rating with Stable Outlook
The Bahamas government has welcomed the latest report from the US-based global credit ratings agency Standard & Poors (S&P), which acknowledged the country’s “robust” recovery and reduction in the fiscal deficit.
Report Highlights
* S&P projected Bahamian economic output (GDP) to grow by 1.8 percent in 2024, slightly lower than the 2.3 percent projected by the International Monetary Fund (IMF) and the Bahamian Central Bank.
* The US-based rating agency maintained The Bahamas’ present ‘B+’ long-term credit rating with a “stable” outlook.
* S&P credited a “robust recovery” post-COVID and the government’s fiscal consolidation efforts, slashing the deficit and containing debt.
Government Response
* Prime Minister Philip Davis said the debt burden’s containment and the government’s new energy reforms supported S&P’s decision to affirm the country’s credit ratings and designate the outlook as stable.
* Davis acknowledged that the country was in crisis when his administration took office, with a national debt increase of US$2.4 billion in just two years.
* He highlighted the government’s efforts to turn around the situation, including implementing nationwide energy reforms, upgrading the electricity grid, and bringing solar power and natural gas to the islands.
Shadow Finance Minister’s Concerns
* Shadow Finance Minister J. Kwasi Thompson expressed concerns about the report, noting that S&P expects the Bahamian economy to slow to 1.8 percent in 2024, highlighting the country’s “below-average long-term growth performance compared with that of others at a similar level of development.”
* Thompson described the agency’s report as a “somewhat bleak story of the economic trajectory of The Bahamas.”
Conclusion
The Bahamas government’s efforts to recover from the COVID-19 pandemic and implement fiscal consolidation measures have been recognized by Standard & Poors. While there are still challenges ahead, the government remains committed to promoting economic growth and development in the country.
FAQs
* Q: What did Standard & Poors report about the Bahamian economy?
A: S&P projected Bahamian economic output (GDP) to grow by 1.8 percent in 2024, slightly lower than the 2.3 percent projected by the International Monetary Fund (IMF) and the Bahamian Central Bank.
* Q: What did the government do to address the country’s economic challenges?
A: The government implemented fiscal consolidation measures, including reducing the deficit and containing debt, and implemented nationwide energy reforms to reduce prices and make electricity more reliable.
* Q: What are the government’s plans for the future?
A: The government plans to continue promoting economic growth and development in the country, including building and strengthening partnerships across the world, strengthening borders, and advocating for policies that help small island states like the Bahamas promote opportunities for Bahamians.