The Bahamas incurred a $1bn trade deficit for the first three months of 2025 despite exports more than doubling year-over-year, it was revealed yesterday.

Data unveiled by the Bahamas National Statistical Institute (BNSI) revealed that this nation imported $1.196bn worth of physical goods commodities during the 2025 first quarter, representing a 16 percent increase compared to the same period in 2024.

Goods exports, including those both produced in The Bahamas and re-exported after being received from other jurisdictions, totalled $191m which was a 101 percent increase compared to the 2024 fourth quarter. However, this could not prevent The Bahamas from running a $1.005bn trade deficit for the three months to end-March 2025.

The Government, as it has previously, will likely argue that the trade deficit’s size - and increase in imports - is a sign of a healthy economy that is continuing to strengthen due to rising consumer spending. And the trade deficit only tracks physical goods, meaning it does not capture the economic impact and output from The Bahamas’ services exports - primarily tourism and financial services.

However, these same services exports - and the foreign currency earnings they generate - are what finances The Bahamas’ ever-growing trade deficits. As a result, the latter is placing increasing pressure on this nation’s most important industries to finance constantly-growing consumption in an import-dependent economy.

“Estimates on commodities imported into The Bahamas totaled some $1.196bn, resulting in an increase of 16 percent when compared with the same period last year,” the Bahamas National Statistical Institute said.

“‘Machinery and transport equipment’, the largest contributor to imports, totalled $272m or 23 percent of all imports. This was followed by the category of ‘Food and live animals’, which accounted for 17 percent or $209m.

“Other categories that contributed significantly to total imports were ‘manufactured goods classified chiefly by materials’, ‘mineral fuels, lubricants and related materials’, and ‘miscellaneous manufactured articles’ with a combined total of $504m (42 percent of total imports).”

As for exports, the Bahamas National Statistical Institute said: “Total exports (domestic and re-exports) for the 2025 first quarter totalled $191m, resulting in an increase of 101 percent when compared to the same period last year.

“The major categories of exports consisted mainly of ‘manufactured goods classified chiefly by materials’ totaling $54m (28 percent of total exports), ‘food and live animals’ totalling $36m (18 percent of total exports) and ‘machinery and transport equipment’ totalling $28m (15 percent of total export).”