By JADE RUSSELL

Tribune Staff Reporter

jrussell@tribunemedia.net

DESPITE previously warning about the country’s risky dependence on imports amid rising costs, Prime Minister Philip “Brave” Davis yesterday described a recent 18 percent jump in imports as a sign of a strong and growing economy driven by increased demand.

His comment to reporters yesterday came in response to a Bahamas National Statistical Institute (BNSI) report showing total imports increased in 2024.

“We are still a consumptive society,” Mr Davis told reporters yesterday on the sidelines of an event yesterday. “The fact that the increase of imports are up speaks to how well the economy is doing. If we need to import more, it means that we need more. We need more. Why? Because the economy is working and people are working, and that’s what we need.”

According to the 2024 Foreign Trade figures released by the BNSI last week, the country imported $4.9bn worth of goods last year, an 18 percent increase from the $4.2bn recorded in 2023.

Machinery and transport equipment topped the import list, followed by food and live animals.

Exports, however, fell 6.4 percent to $689m in 2024 from $736.16m in 2023.

Domestic exports made up $183.6m  (27 percent), mainly food, live animals, and chemicals, while re-exports accounted for $505m (73 percent), primarily manufactured goods, the BNSI report said.

In contrast to his recent comments, Mr Davis has previously cautioned about The Bahamas’ heavy reliance on imports for food and energy, highlighting the need for structural reforms to boost economic resilience.

During the October 2024 Speech from the Throne, he acknowledged that this import-dependent model exacerbated the impact of global inflation, making prices “exorbitant” locally.

“Our reliance on imports has been hardwired into our economic model for generations. While people all around the world are paying higher costs as a result of the inflation crisis, the prices we pay here in The Bahamas due to our import-reliant economic model can be exorbitant,”  the prime minister said at the time.

He added that changing this generational model is essential for improving economic security.

 In March, Mr Davis pledged that The Bahamas would address emerging trade challenges, including possible tariff wars, through deliberate trade diversification. He highlighted the importance of new trade partnerships, noting that a single new source market can significantly reduce the cost of goods.

Asked yesterday if enough was being done to reduce the import bill, he said the government was acting where it could but emphasised the need to focus on which imports are increasing, linking the rise to a thriving economy.

The BNSI report also revealed the United States was The Bahamas’ top trading partner, accounting for 83 percent of imports and 65 percent of exports.

Agriculture Minister Jomo Campbell also echoed Mr Davis’ comments, linking the increase in imports to the country’s growing tourism industry.