The Moody’s Report which was quietly released last Wednesday had very little good news for the Bahamas;
The Bahamas’ sovereign credit rating is unlikely to improve for at least three to five years, with this nation having suffered the greatest loss of stopover tourist market share in the Caribbean – 2.6 percentage points – since the recession.
Moody’s, in a relatively bleak analysis on the Bahamas and five other tourism-dependent Caribbean economies, warned that most would “continue to struggle with high debt levels” until 2020.
This was despite several nations, including the Bahamas (providing Baha Mar delivers), being poised to enjoy their highest GDP growth rates for five years in 2015-2016.
In particular, the Wall Street credit rating agency noted that with 13.6 per cent of government revenues being employed to meet interest payments on its existing debt, the Bahamas is currently performing better than only Jamaica and Barbados on this indicator.
And its analysis also reveals that the Bahamas is now enjoying the same average year-over-year GDP growth rate of 1 per cent as it did before the 2008-2009 financial crisis and global recession hit.
The Moody’s report shows that Bahamian economic growth has been stagnant for the past decade, as it averaged 1 per cent year-over-year between 2004-2008 – the same rate it has generated between 2010-2014.
My key takeaway from this article
How can we dig ourselves out of this mess?