The Tribune

BY NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chairman yesterday warned that 2015 could prove a “tipping point year” for this nation, arguing that there was no “silver bullet” to avoid another credit rating downgrade.

Gowon Bowe yesterday reiterated the Chamber’s call for a three-pronged approach of GDP growth, tax reform and government spending reductions to solve the Bahamas’ ill.

“I think the main message is that there is no silver bullet. There is not going to be any one element that is either going to stave off a downgrade or lead to an upgrade. That’s why we are pushing that it has to be GDP growth, tax reform and that deficit spending is curtailed,” Mr Bowe said. “We want to continue the conversation of fiscal responsibility. We don’t want it to be lost on the fact that this was a three-pronged approach; GDP growth, spending cuts and tax reform.

“We’re still very much focused on the VAT and tax reform issues. We saw the Ease of Doing Business slippage and that doesn’t bode well for GDP growth. We need to be working as a Chamber along with the Government to ensure that we start improving the Ease of Doing Business ranking to ensure that we stimulate GDP growth, and we want the Government to really implement tangible elements, such as laws and regulations that are going to govern spending, and a feasibility analysis for projects going forward.”

Mr Bowe added: “Looking at it, 2015 will certainly be a tipping point year, as the IMF and other agencies will be looking to see that there is monumental movement in the deficit.

“They are going to be looking to see if there is a very clear path to debt reduction and sovereign debt management, which in reality we have not had.”