Bahamas sees growth in real gross domestic product for the past year

The Bahamas National Statistical Institute (BNSI) has reported a 2.6 per cent increase in real gross domestic product (GDP) in the country, signaling a return to pre-COVID pandemic economic growth levels. The real GDP rose from US$12.5 billion in 2022 to US$12.83 billion in 2023. The nominal GDP also saw significant changes, increasing from US$13.14 billion in 2022 to US$14.34 billion in 2023. The tourism sector played a key role in driving this growth, with a 15.4 per cent increase in real GDP and a 10.78 percent increase in nominal GDP.

The BNSI stated that economic activity in The Bahamas increased by 9.2 per cent in nominal terms and 2.6 per cent in real terms in 2023, with most industries showing marginal growth while tourism-related industries experienced substantial growth. The total value of goods and services produced in the Bahamian economy was estimated at US$14.3 billion in nominal prices and US$12.8 billion in real prices for 2023. This growth indicates a positive trend for the country’s economic recovery following the economic contraction of 21.42 per cent in 2020 due to the COVID-19 pandemic.

The report highlighted that the accommodation and food services industry led the growth in 2023, with a 26 per cent increase of US$226 million compared to 2022, driven by the rise in tourism arrivals. The construction industry also saw significant growth of $113 million, or 22 per cent, due to increased capital investment. Transportation and storage increased by 16 per cent, with air and land transportation experiencing substantial growth following the removal of the United States air vaccine travel mandate in May 2023.

Household consumption in The Bahamas increased by nearly US$621 million, or eight percent, in 2023, with food and non-alcoholic beverages accounting for the majority of this expenditure. General government consumption, which includes public administration, defense, education, and health, increased by US$87 million, or four percent. The increase in compensation of employees, public service-wide promotions, and increments for civil servants contributed to the overall rise in government consumption.

Exports of goods and services in The Bahamas increased by $200 million, or five per cent, over 2022, driven by tourism expenditure, which represents the bulk of exports of services. The rise in tourist arrivals and spending within the economy offset the reduction in exports of goods. The overall economic growth in 2023 reflects a positive trajectory for The Bahamas, with various industries experiencing growth and driving the country towards sustainable economic recovery.