Analysis by Region - Emerging Markets - Bahamas

Analysis by Region - Emerging Markets - Bahamas

Given its reliance on tourism, the Bahamian economy has been hit hard in the past few years, with the Covid-19 pandemic following in the aftermath of Hurricane Dorian. Despite gains in the tourism sector, risks to the outlook remain as inflation erodes purchasing power. Emerging Covid-19 variants and the possibility of renewed lockdown measures, coupled with the fact that only 40.2% of Bahamians are fully vaccinated, could hinder economic recovery. Thus, we have downgraded our 2022 GDP growth forecast from 8.5% to 6%, and from 4% to 3.3% in 2023.