The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Opposition’s finance spokesman said yesterday that while he expects Baha Mar to provide “some lift” to the Bahamian economy, it likely will not be enough to offset the adverse impact of Hurricane Matthew.

Moody’s, in its November 2016 update on the Bahamas, said

the agreement between the Government and China Export-Import Bank for Baha Mar’s construction completion and opening presented “major upside” for the Bahamian economy and its growth prospects.

“While the details of the agreement were not disclosed, the Government made it clear that it expects the main facilities to open during the 2016-2017 winter season,” Moody’s said.

“Although it is unlikely that the restart of the project will provide a significant boost to the economy in 2016, it represents a major upside risk for economic growth in 2017.”

Mr Turnquest, though, struck a more pessimistic note, and suggested that Moody’s decision to increase the Bahamas’ projected 2017 GDP growth from 1 per cent to 1.2 per cent may have been premature.

“I think that they are projecting that Baha Mar is going to have a significant effect,” he said. “I don’t necessarily share that view at the moment.

“That may change, but right now I don’t see it, and I don’t want to be a doom and gloom guy. I believe that  the workout of Baha Mar in terms of completion of the deal is not going to be realised until after the end of this fiscal year, and so I don’t expect it to be much of a contributor.”

Moody’s has increased its 2017 GDP growth forecast for the Bahamas to 1.2 per cent, up from 1 per cent in August, with Baha Mar’s opening vital to maintaining its ‘stable’ outlook on this nation. Hong Kong-based conglomerate, Chow Tai Fook Enterprises (CTFE), has been named as Baha Mar’s prospective buyer.

“There may be some lift but I don’t think that’s going to be enough to offset the negative impact of these storms in this fiscal year. But they’re the experts. I would only note that they have been overly aggressive for several years now on our growth forecast,” said Mr Turnquest.