The Central Bank of The Bahamas hosted a press event on Monday to release the bank’s latest report on the Bahamian economy.
Governor of the Central Bank, John Rolle explained the country’s current fiscal position compared to the same time last year. He said, “external reserves grew by about $171 million over the first quarter of 2025 and as at the end of April were approaching $2.8 billion which is moderately less than the estimated $2.9 billion a this point last year. In the fiscal sector consolidation trends as expected to continue despite the increase trade policy uncertainty given sustained reforms by the government to broaden the revenue base such as toward cruise tourism and the domestic minimum corporate tax.”
Rolle said the country could experience a tourism slow down from weakened US consumer confidence. “In addition, the inflation outlook for The Bahamas is potentially elevated. Reduced air traffic is estimated to have impeded hotel sector performance most as vacation rental sales which are an important segment of the stopover market experienced further expansion and such activities attracted incrementally appreciated average daily rental rates.”
The Central Bank governor also addressed the impact of the US tariffs are having on the Bahamian economy. He said, “the downside risk facing the economy have increased particularly in light of the tariffs imposed by the United States and uncertainty over how trade policy tensions between the US and its major trading partners will be resolved. Never the less the likely magnitude of trade policy uncertainty or potential outcomes for The Bahamas still do not justify any precautionary response by the Central Bank in terms of either monetary policy or prudential measures in regards to the banking sector.”
