Is a dangerous new phase in the global economic turmoil on the horizon?
It's a question worth considering, given the ominous developments in Europe over debt.
This possibility is no doubt of paramount concern to The Bahamas' policymakers.
Europe represents about one-fifth of the world economy, which is comparable to the U.S. share.
Economists argue that if Europe relapses into a worse recession, worldwide economic nationalism would intensify.  Europe buys about 25 percent of America's exports - a number which would decline.
The weaker economies of the European Community - Portugal, Ireland, Italy, Greece and Spain - are struggling because of large fiscal deficits and burdensome debt loads.
A fall off in European economic activity adversely affects the economy of its major trading partner - the U.S.
In so far as U.S. exports to Europe are reduced, so is U.S. disposable income.
Any reduction in U.S. income is reflected in less spending on leisure items, including trips to The Bahamas.  A further European downturn could reduce Bahamian national income.
That of course would translate into even more tough times for Bahamians who are already struggling under the weight of a prolonged economic downturn.
The global crisis of 2008 had a significant impact on the Bahamian economy.  Tourist arrivals declined and foreign direct investment fell, leading to a contraction in domestic activity and a spike in unemployment.
Forecasts for meaningful economic recovery continue to be pushed back - in some predictions, quite a few years.
The national debt stands at about $4.1 billion.  The slow economic recovery in the U.S. continues, which does not bode well for our stopover tourist numbers, and it appears that the Baha Mar project is one of the only hopes we have for outside investment in the short-term.
And even though Baha Mar will bring in temporary benefits, will these benefits be sustainable at the end of the project and will our stopover arrivals be sufficient to fill all of the rooms the project calls for?
Officials point out that despite the growth in national debt, The Bahamas is still well placed when compared to our Caribbean counterparts.  However, our debt level has risen since the recession.
The government has done its best to weather the economic storm, but will that be enough to take us through another round of economic turmoil?
What are the government's long-term plans if the country goes into a double-dip recession?  What are its plans as it relates to borrowing levels and capital expenditure?
It will be hard for the country to sustain yet another blow to its economic health.
Are we prepared for such a blow?
Difficult economic times demand creative solutions.

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