NASSAU, Bahamas, CMC – The Bahamas National Statistical Institute (BNSI) says the country recorded a 2.6 percent increase in the actual gross domestic product (GDP) last year as the Caribbean Community (CARICOM) country returns to pre-COVID pandemic economic growth levels.
In its latest figures, the BNSI said that the real GDP increased from US$12.5 billion in 2022 to US$12.83 billion last year. However, it noted that the changes in nominal GDP year over year were more significant, moving from US$13.14 billion in 2022 to US$14.34 billion in 2023.
The BNSI said the real GDP increased by 15.4 percent and 10.78 percent, respectively, as the world emerged from the coronavirus (COVID-19) pandemic, with the tourism sector leading the growth.
“According to the 2023 annual estimates, economic activity in The Bahamas increased significantly by 9.2 percent in nominal terms and by 2.6 percent in real terms as business activity experienced modest gains.
“When compared to 2022, the majority of industries showed marginal growth, while tourism-related industries experienced sizable growth. In 2023, the total value of goods and services produced in the Bahamian economy was estimated at US$14.3 billion in nominal prices and US$12.8 billion in real prices,” the BNSI said in a statement.
The Bahamas’ economy contracted 21.42 percent in 2020 due to the COVID-19 pandemic.
In 2019, economic growth was negative by 1.36 percent, mainly due to Hurricane Dorian’s impact.
However, last year’s real GDP growth was more consistent, with 2.63 percent in 2018 and 2.72 percent in 2017.
The BNSI said accommodation and food services led the growth last year, which increased by US$226 million, or 26 percent, compared to 2022. It added that “this growth is directly connected to the increase in tourism arrivals.
“As indicated by the Ministry of Tourism, the number of air and cruise tourist arrivals increased by 24 percent, with 7.8 million visitors in 2022 compared to 9.7 million in 2023.”
Due to increased capital investment in the country, the construction industry increased by $113 million, or 22 percent, in 2023.
“Transportation and Storage increased by US$98 million (16 percent) as air and land transportation grew substantially,” the BNSI said, noting that the “removal of the United States air vaccine travel mandate occurred in May 2023, which encouraged extra travel.”
The BNSI said household consumption increased 2023 by nearly US$621 million, or eight percent.
“Food and non-alcoholic beverages were responsible for the lion’s share of the increased household expenditure, with the rising cost of these expenditures resulting in the gap between nominal and real growth in this grouping,” the BNSI statement said, noting that general government consumption, which includes public administration and defense, public education and public health, increased by US$87 million, or four percent.
“The overall increase in general government consumption reflects the government’s increased consumption of goods and services, employee compensation, and fixed capital goods consumption.
“The increase in compensation of employees included public service-wide promotions and increments for civil servants.
“Exports of goods and services increased by $200 million (five percent) over 2022. This growth was led by tourism expenditures, which represent the bulk of exports of services,” BNSI said, adding that “the tourist arrivals and the resulting spending within the economy offset the reduction of exports of goods.”