December 10, 2018
The Bahamian economy continues to recover, with real GDP growth projected to reach 2.3 percent in 2018 and 2.1 percent in 2019. The Fiscal Responsibility Law (FRL) will support the government’s efforts to secure fiscal sustainability and put debt on a downward path.", "publishDate": "2018-12-10", "sections": [ { "heading": "Economic outlook and growth", "content": "- Visit dates: December 3-7, 2018.\n- Real GDP growth projected to reach 2.3 percent in 2018 and 2.1 percent in 2019.\n- Growth drivers identified:\n - Increase in tourist arrivals.\n - Expansion of hotel room and airlift capacity.\n - Continued expansion of the U.S. economy.\n- Policy guidance:\n - Maintain strong fiscal and financial policies to bolster resilience and build buffers against less favorable external conditions.\n - Advance reforms to achieve more inclusive growth over the medium term." }, { "heading": "Fiscal developments and Fiscal Responsibility Law (FRL)", "content": "- Press Release No. 18/466; date: December 10, 2018.\n- Fiscal performance:\n - Fiscal deficit narrowed from 5.5 percent of GDP in FY 2017 to an estimated 3.3 percent in FY 2018.\n - FY 2019 budget targets an overall deficit of 1.8 percent of GDP, supported by various revenue mobilization measures.\n- FRL:\n - Enactment of the Fiscal Responsibility Law (FRL) is welcomed as supporting fiscal sustainability and placing debt on a downward path.\n - FRL implementation expected to increase transparency and enhance policy credibility.\n- Expenditure and arrears:\n - Fiscal consolidation should include decisive measures to contain expenditure growth in the short and medium term.\n - Team welcomed transparent recognition of accumulated arrears and budgetary provisions to clear them, and plans to put in place robust expenditure control systems." }, { "heading": "Financial sector health and reforms", "content": "- Banking system indicators (as of June 2018):\n - Average capital to risk-weighted assets ratio across domestic institutions: 34 percent.\n - Regulatory target ratio: 17 percent.\n - Non-performing loans: 9.6 percent of total loans, down from 12.3 percent a year earlier.\n- Recommendations and priorities:\n - Speedy establishment of the credit bureau to enhance credit market efficiency, increase credit growth, and help financial inclusion.\n - Recognize and manage risks from withdrawal of correspondent banking relationships.\n - Sustain efforts to fully implement the Action Plan agreed with the Financial Action Task Force to increase compliance with international standards on Anti-Money Laundering and Combating the Financing of Terrorism." }, { "heading": "Financial technology and central bank digital currency", "content": "- The Central Bank of The Bahamas is preparing to pilot a digital central bank currency.\n- IMF team view:\n - New financial technologies can foster financial inclusion.\n - A gradual approach to piloting will help mitigate potential risks to the economy." }, { "heading": "Disaster preparedness and risk-reduction", "content": "- Government plan to establish a disaster relief fund as part of a broader strategy for preparedness and risk reduction policies is welcomed." }, { "heading": "Engagements and acknowledgements", "content": "- Mission led by Fabian Bornhorst.\n- Meetings with:\n - Honorable K. Peter Turnquest, Deputy Prime Minister and Minister of Finance.\n - Mr. John Rolle, Governor of the Central Bank of The Bahamas.\n - Other senior government officials and representatives of the private sector.\n- Statement note: Views in the end-of-mission press release reflect IMF staff and do not necessarily represent the views of the IMF’s Executive Board; the mission will not result in a Board discussion.\n\nPress Release No. 18/466 — International Monetary Fund, December 10, 2018.\n\n---\n\n\n References\n\n- The Bahamas and the IMF\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2018/12/10/pr18466imf-staff-concludes-visit-to-the-bahamas" } ], "bullets": [ "[Markdown version](/en/news/articles/2018/12/10/pr18466imf-staff-concludes-visit-to-the-bahamas/index.md)", "[Structured JSON version](/en/news/articles/2018/12/10/pr18466imf-staff-concludes-visit-to-the-bahamas/index.json)", "[Bundle manifest](/en/news/articles/2018/12/10/pr18466imf-staff-concludes-visit-to-the-bahamas/bundle-manifest.json)", "Published: December 10, 2018", "Visit dates: December 3-7, 2018.", "Real GDP growth projected to reach 2.3 percent in 2018 and 2.1 percent in 2019.", "Growth drivers identified:", "Policy guidance:", "Press Release No. 18/466; date: December 10, 2018.", "Fiscal performance:", "FRL:", "Expenditure and arrears:", "Banking system indicators (as of June 2018):", "Recommendations and priorities:", "The Central Bank of The Bahamas is preparing to pilot a digital central bank currency.", "IMF team view:", "Government plan to establish a disaster relief fund as part of a broader strategy for preparedness and risk reduction policies is welcomed.", "Mission led by Fabian Bornhorst.", "Meetings with:", "Statement note: Views in the end-of-mission press release reflect IMF staff and do not necessarily represent the views of the IMF’s Executive Board; the mission will not result in a Board discussion.", "[The Bahamas and the IMF](http://www.imf.org/external/country/BHS/index.htm)", "[Press Releases](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2018/12/10/pr18466imf-staff-concludes-visit-to-the-bahamas/index.md", "json": "/en/news/articles/2018/12/10/pr18466imf-staff-concludes-visit-to-the-bahamas/index.json", "bundleManifest": "/en/news/articles/2018/12/10/pr18466imf-staff-concludes-visit-to-the-bahamas/bundle-manifest.json" }, "generatedAtUtc": "2026-09-25T22:24:29.074Z" }