NASSAU, BAHAMAS — Central Bank Governor John Rolle said yesterday that this nation’s strong tourism rebound will likely overpower the impact of forces threatening the global economy.
Rolle suggested this trend would continue through the course of 2023 during a press briefing to discuss the regulator’s monthly economic and financial developments report for September
He acknowledged that the Bahamian economy is facing increased inflation, through higher costs on imported goods and services.
“While the growth outlook is positive, the risks to the economy are expected to stay elevated over the near term, largely as a result of the uncertainties in the international environment,” he said.
Still, Rolle noted that the Central Bank expects that this nation’s strong tourism rebound will likely “overpower” some of the negative trends in the global economy.
“Even with the drag happening on global economic activities and the likely impact that higher interest rates will have, we are experiencing and benefiting from the pent-up demand for travel, and that recovery for us is going to overpower some of the negative trends out there in the global environment,” said Rolle.
He continued: “Had the global environment presented itself in a more favourable context the sort of recovery and growth you see for The Bahamas would be even stronger. Our performance would have been stronger to the extent that it would have also drawn on the other positive elements in the global economy. From everything being forecast and assessed we see that trend containing through the course of 2023.”
Rolle noted that in the case of the cruise market, the monthly seasonal performance has already eclipsed pre-pandemic levels and in the stopover segment the monthly gap is still closing. He noted that the monthly comparisons show that air arrivals in August had regained approximately 90 percent of the pre-pandemic baseline, while in the month-over-month comparisons, the 2019 outcomes could be matched by the end of the third quarter of 2022.