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Prime Minister Davis:  The Bahamas typically outperformed IMF growth projections over the past four years

Mon, Mar 9th 2026, 11:15 AM
Politics

While giving a Domestic Economic Overview and Outlook, during his contribution on the Mid-Year Budget Communication for Fiscal Year 2025/2026, Prime Minister and Minister of Finance the Hon. Philip Davis noted that, over the past four years, The Bahamas has typically outperformed IMF growth projections.

“In 2021, the IMF forecasted real GDP growth of just two percent, but the economy grew by 17.6 percent,” he said, on March 4, 2026, in the House of Assembly.

“The trend continued in 2022, with actual growth reaching 10.9 percent compared to the IMF’s 8.0 percent projection,” he added.  “By 2024, while the IMF anticipated a modest 1.9 percent increase, The Bahamas achieved a 3.4 percent growth rate.”

Prime Minister Davis then turned to speaking on the strengthening of community-based tourism and ensuring that the fiscal benefits of this expansion were more evenly distributed across The Bahamas.  He pointed out that The Bahamas had strengthened its position as a premier cruise destination through “bold partnerships and strategic investments”.

“These investments are not just figures on paper, they represent confidence in The Bahamas, confidence in our people, and confidence in our future,” he stated.

Prime Minister Davis added that, across The Bahamas’ Family Island cruise destinations, they were witnessing “unprecedented development”.

“As major cruise lines invest in building luxury private island destinations throughout our archipelago, The Bahamas benefits alongside them,” he said.  “These developments drive economic activity, increase visitor spending, and expand opportunities island by island.”

He added:  “For example, in July 2025, Carnival Cruise Line officially opened Celebration Key on Grand Bahama, a transformative private beach destination that has already generated increased visitor arrivals, created new employment opportunities for Bahamians, and stimulated economic activity on the island.  Similarly, in December 2025, Royal Caribbean International launched the Royal Beach Club on Paradise Island, further enhancing the tourism product in Nassau with a premium beach experience designed specifically for cruise visitors.”

Prime Minister Davis stated that those projects were not “isolated ventures”.

“They are part of a broader national strategy to ensure that tourism remains the primary driver of our economic growth over the next three years,” he said.  “The contributions to GDP from cruise tourism continue to expand, strengthening government revenues and supporting infrastructure development throughout our islands.”

Prime Minister Davis added:  “Most importantly, these investments create jobs. They lower unemployment. They empower Bahamians to earn a living, support their families, and build generational wealth. From construction and hospitality to transportation and small business services, the ripple effects are felt throughout our communities.

“We are creating opportunities island by island, ensuring that growth is not confined to one location, but shared across our archipelago.”

He pointed out that, together, those developments underscored The Bahamas’ role as a valued and trusted partner in the global cruise industry. Prime Minister Davis added that they also reflected “our unwavering commitment to delivering world-class tourism experiences while ensuring that Bahamians remain at the center of our nation’s progress”.

Prime Minister Davis noted that the national unemployment rate declined to 9.3 percent in the second quarter of 2025, down from 10.8 percent in the first quarter, with youth unemployment falling to 20.3 percent and driving much of the improvement.

“Looking ahead, unemployment is expected to ease slightly to 9.1 percent in 2026,” he said.  “In more recent years, unemployment averaged 14.1 percent between 2017 and 2020, then moved to an average of 9.9 percent in the four years following the 2021 election, supported by a broad recovery in services particularly tourism and steady growth in construction and retail.”

Prime Minister Davis stated that, on the price front, inflation remained “contained”.

“The most recent data through May 2025 shows a modest 0.4 percent increase compared with the same period in 2024,” he said.  “The largest price increases were recorded in furnishings and household equipment, clothing and footwear, and health services, while gasoline and diesel prices declined by 7.3 percent and 7.8 percent, respectively. 

“Overall, The Bahamas continues to demonstrate steady economic progress, supported by strong tourism performance, improving labour market conditions, and contained inflation,” Prime Minister Davis added.

While giving a Domestic Economic Overview and Outlook, during his contribution on the Mid-Year Budget Communication for Fiscal Year 2025/2026, Prime Minister and Minister of Finance the Hon. Philip Davis noted that, over the past four years, The Bahamas has typically outperformed IMF growth projections.
“In 2021, the IMF forecasted real GDP growth of just two percent, but the economy grew by 17.6 percent,” he said, on March 4, 2026, in the House of Assembly.
“The trend continued in 2022, with actual growth reaching 10.9 percent compared to the IMF’s 8.0 percent projection,” he added.  “By 2024, while the IMF anticipated a modest 1.9 percent increase, The Bahamas achieved a 3.4 percent growth rate.”
Prime Minister Davis then turned to speaking on the strengthening of community-based tourism and ensuring that the fiscal benefits of this expansion were more evenly distributed across The Bahamas.  He pointed out that The Bahamas had strengthened its position as a premier cruise destination through “bold partnerships and strategic investments”.
“These investments are not just figures on paper, they represent confidence in The Bahamas, confidence in our people, and confidence in our future,” he stated.
Prime Minister Davis added that, across The Bahamas’ Family Island cruise destinations, they were witnessing “unprecedented development”.
“As major cruise lines invest in building luxury private island destinations throughout our archipelago, The Bahamas benefits alongside them,” he said.  “These developments drive economic activity, increase visitor spending, and expand opportunities island by island.”
He added:  “For example, in July 2025, Carnival Cruise Line officially opened Celebration Key on Grand Bahama, a transformative private beach destination that has already generated increased visitor arrivals, created new employment opportunities for Bahamians, and stimulated economic activity on the island.  Similarly, in December 2025, Royal Caribbean International launched the Royal Beach Club on Paradise Island, further enhancing the tourism product in Nassau with a premium beach experience designed specifically for cruise visitors.”
Prime Minister Davis stated that those projects were not “isolated ventures”.
“They are part of a broader national strategy to ensure that tourism remains the primary driver of our economic growth over the next three years,” he said.  “The contributions to GDP from cruise tourism continue to expand, strengthening government revenues and supporting infrastructure development throughout our islands.”
Prime Minister Davis added:  “Most importantly, these investments create jobs. They lower unemployment. They empower Bahamians to earn a living, support their families, and build generational wealth. From construction and hospitality to transportation and small business services, the ripple effects are felt throughout our communities.
“We are creating opportunities island by island, ensuring that growth is not confined to one location, but shared across our archipelago.”
He pointed out that, together, those developments underscored The Bahamas’ role as a valued and trusted partner in the global cruise industry. Prime Minister Davis added that they also reflected “our unwavering commitment to delivering world-class tourism experiences while ensuring that Bahamians remain at the center of our nation’s progress”.
Prime Minister Davis noted that the national unemployment rate declined to 9.3 percent in the second quarter of 2025, down from 10.8 percent in the first quarter, with youth unemployment falling to 20.3 percent and driving much of the improvement.
“Looking ahead, unemployment is expected to ease slightly to 9.1 percent in 2026,” he said.  “In more recent years, unemployment averaged 14.1 percent between 2017 and 2020, then moved to an average of 9.9 percent in the four years following the 2021 election, supported by a broad recovery in services particularly tourism and steady growth in construction and retail.”
Prime Minister Davis stated that, on the price front, inflation remained “contained”.
“The most recent data through May 2025 shows a modest 0.4 percent increase compared with the same period in 2024,” he said.  “The largest price increases were recorded in furnishings and household equipment, clothing and footwear, and health services, while gasoline and diesel prices declined by 7.3 percent and 7.8 percent, respectively. 
“Overall, The Bahamas continues to demonstrate steady economic progress, supported by strong tourism performance, improving labour market conditions, and contained inflation,” Prime Minister Davis added.
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