By Fay Simmons

Tribune Business Reporter

jsimmons@tribunemedia.net

THE average Bahamian is not feeling the effects of the 3.4 percent growth rate, according to FNM financial spokesman Kwasi Thompson - who said many still struggle to keep their businesses and personal finances afloat.

Speaking in Parliament yesterday, as a compendium of financial legislation was being debated, Mr Thompson said the increased growth rate, mentioned by Prime Minister Philip Davis during his contribution, was “concentrated” among a few individuals that are “well connected” and not felt by all residents.

“The Bahamas National Statistical Institute (BNSI), as was said by the Prime Minister, says that the economy grew by 3.4 percent last year. But unfortunately, most Bahamians are wondering, who is actually feeling it?”, he asked.

“We actually listen to the unions. We have heard parents trying to stretch their pay cheques to afford groceries and school fees. We hear from young people frustrated with the lack of opportunities, wondering if they will ever be able to own their own home. We see small business owners fighting to stay afloat as costs continue to rise. The reality, I believe, is that growth, if it is really happening, is being concentrated among a well-connected few, not for all.”

Mr Thompson said the reasons behind the growth rate projections for 2024 given by international organisations differs so vastly from the actual growth rate revealed by the BNSI.

“We also need to look at why there is such a marked difference between the Bahamas National Statistical Institute figures when compared to international organisations like the IMF and the private sector rating agencies like Moody’s and S&P,” said Mr Thompson.

“Also remember that the recent IMF figures suggest, in line with the Bahamas Central Bank’s expectation, a more subdued growth this year, GDP growth will be 1.7 percent this year, falling to 1.6 percent in 2026 and falling again to 1.5 percent in 2027.”

He said the rise in youth unemployment is also concerning and questioned how the economy will continue to grow if there are little opportunities for young people.

“I am also particularly concerned about youth unemployment. According to the latest data, it is rising. Almost one in five Bahamians under 25 are unemployed. What sort of economy are we building if it doesn’t provide opportunities for the next generation? It shows the so-called growth the PLP talks is doing little for the ordinary people,” said Mr Thompson.

The BNSI unveiled data showing the Bahamian economy grew by 3.4 percent in real terms during 2024. That estimate, which strips out the impact of inflation on the data, was some 1.4 percentage points higher than the International Monetary Fund’s (IMF) estimate for last year.

The Institute’s figures, if accurate, would place Bahamian economic output last year some $195.44m, or almost $200m, higher than that projected by the IMF. The former’s data shows that the Bahamian economy, following its post-COVID reflation and recovery, expanded by 38.9 percent in four years or almost $4bn, growing from $10.158bn at the pandemic’s peak to $14.108bn in 2024.