IMF: Baha Mar to Help Lead Economic Pickup in the Bahamas

Above: the Bahamas

By the Caribbean Journal staff

The Bahamas should see a boost in economic growth beginning in 2014, according to the International Monetary Fund.

The fund said that a reduction in tourist arrivals and in the completion of major public infrastructure projects was being offset by an increase in foreign investment in large part due to the Baha Mar resort project in New Providence.

Starting in 2014, economic growth is expected to pick up as the US economy strengthens, tourist arrivals rebound and the Baha Mar opens, the Fund said.

Together, that will lead to an increase in GDP of 2.75 percent in 2015-2016 before moderating to around 2.5 percent afterwards, according to the fund, which recently completed a mission to the country to conduct discussions on the 2013 Article IV consultations.

“Economic activity continues to recover from the crisis at a slow pace,” said Mbuyamu Matungulu, who headed the IMF’s team.”Real Gross Domestic Product (GDP) growth is projected at 1.9 percent in 2013, marginally higher than 2012.”

The IMF also addressed the planned implementation of a Value-Added Tax in the country, calling for “all efforts and resources” to be deployed to “ensure its timely implementation.”