By KHRISNA RUSSELL
Deputy Chief Reporter
krussell@tribunemedia.net
THE Bahamas’ Gross Domestic Product increased 2.7 percent in 2017, while government consumption increased by 12 percent, according to new data released by the Department of Statistics Friday.
This bodes well for the country, which only had 0.4 percent growth in 2016. However, both years were down significantly from 2015’s 7.6 percent GDP growth.
The newest results were based on early estimates from major data sources such as the Central Bank, Ministry of Tourism, the Foreign Trade Section of the Department of Statistics and many others.
“The preliminary 2017 results revealed an increase of 2.7 percent in GDP at current market prices and at constant 2012 prices a real growth of 1.4 percent,” a press statement from statistic officials said. “The main industries contributing to this growth in GDP include - construction, wholesale and retail trade, business services of a professional nature, administrative business services and arts and other services.
“The expenditure approach to GDP revealed that gross fixed capital formation also grew by 13 percent, due mainly to ongoing capital works, as well as a continuation of major repairs to infrastructure that were required after Hurricane Matthew.
“Additionally, government consumption increased by 12 percent while consumption by households, grew by nine percent. The imports of goods and services sector, which has a dampening effect on GDP growth, increased by 14 percent, which was due mainly to a 17 percent growth in imported goods.
“Consistent with the department’s normal revision calendar of the GDP series, the GDP for 2012 to 2017 will be subject to further review and any revisions will be included in the 2018 National Accounts Report.”
The GDP, the Department of Statistics said, is measured in both current market prices and constant 2012 prices. The current measure utilises current price levels and currency values, factoring in inflation and determines the total value of the products and services produced in a particular year.
The constant prices takes into account the impact of inflation and is more useful for studying trends in economic growth, officials said.
Comments
John 5 years, 12 months ago
Maybe because Bah Mar kicked in but overall the economy is down. Very down especially since January 2018. Some businesses sales are down by 39%. But still unemployment may have decreased in New Providence by 1-2 % as well. Again Bah Mar hirings. No other major economic activity. The Pointe is exclusively foreign labor and materials.
Cobalt 5 years, 12 months ago
This is really good news! Small, but significant step in the right direction! God bless the Bahamas!
John 5 years, 12 months ago
Well actually the entire tourist sector is up. Atlantis, Sandals and also the resorts in Abaco Eleuthera and Exuma. Maybe a spin-off from the hurricane damage in the Caribbean, but hopefully it is a turn around the bend to a rebound.
proudloudandfnm 5 years, 12 months ago
Meanwhile Freeport starves.
realfreethinker 5 years, 12 months ago
You seem to have an affinity for Freeport. Not all in Freeport is bad. a part from the hotel industry,the other sectors are doing fairly well,especially the industrial sector. I know of businesses showing 20% + growth.
realitycheck242 5 years, 12 months ago
Freeport has lost it visionary leaders in the late Sir Edward and Sir Jack and their children and grand children has not shown the leadership, vision or business acumen to jump start that economy. Maybe if they would come up with some good ideas the government would not have to consider regressive investments like Oban.
sheeprunner12 5 years, 12 months ago
Where is this GDP growth??????? ........... Can the Government post a GDP growth map by island????? ............ I am sure the vast majority of islands will show NEGATIVE GDP growth ....... That is the problem this country faces ......... unequal disparity and distribution of wealth
John 5 years, 12 months ago
Ok let’s start with the GDP for Lyford Cay and Old Fort Bay then Albany. So now you see your statement makes no sense. The wealthiest communities may contribute little or nothing to the local GDP. In fact even most of their consumption may be foreign and therefore excluded.
sheeprunner12 5 years, 12 months ago
John, you are way off on this one ....... Are we that insignificant out here, that NO official GDP statistics are done for the Out Islands????? ........ Can economists, investors etc. not be able to access basic economic indicators for the individual islands that they are seeking to INVEST in????? ....... But, then, this is a Nassaucentric political and economic system, with the rest of us as fiefdoms of the Nassau elites.
realitycheck242 5 years, 12 months ago
From a look at the indicators on the surface, it is safe to conclude that Bimini, Exuma, Abaco and Habour Island are all doing very well.
hrysippus 5 years, 11 months ago
Negative and simplistic but not surprising. Lots of construction and related jobs created.
proudloudandfnm 5 years, 12 months ago
Sorry real thinker. Wrong. No one is doing well in Freeport. If you don't live here come see for yourself. Unemployment is sky high and continuing to go up. People are being forced to leave the island daily. Companies closed down weekly. Nothing about Freeport is good right now...
bogart 5 years, 12 months ago
Nikki Kelly article dd Monday 23, April, 2018 'Immigration numbers threat to Bahamiaan cultural identity' in her column 'Between The Lines' in the Punch '...remittances sent back to Haiti from Haitian immigrants in this country totalled $56.1 million in 2016.' .............. Bearing in mind sognifocant numbers of Haitians live in shantytowns estimates some 50,000 ??even these figures from 2016 then the GDP for shanties must be evaluated.Lol
sheeprunner12 5 years, 12 months ago
If Nikki Kelly's stats are accurate ......... Can you imagine how much is unofficially being taken out??? ....... That $56 million can easily double. Can you imagine its impact on our Treasury's bottomline???? .... We see it play out everyday as the Government reduces spending to each Ministry Department to reduce the deficit ....... While our FX is drained by the immigrants.
realitycheck242 5 years, 12 months ago
I wont worry to much about the Haitains remittances.because remittances is a two way street. We need satistics on the Bahamian diaspora remittances back to the Bahamas. I am sure that figure would exceed the out flows.from all Hatians and Jamaicans .combined.
sheeprunner12 5 years, 12 months ago
Who????? ....... Drugs and human smugglers????? ...... That does not count as remittances ....... Bahamians spend more money shopping in Florida and paying children college fees ........ But remittances???????
ohdrap4 5 years, 12 months ago
Where do I sign up for a remittance? I need one.
John 5 years, 12 months ago
The biggest problem The Bahamas face is the absence of the multiplier effect of money. That simply is the number of times a dollar changes hands before it leaves the economy. In the Jewish community a dollar turns over 13 times and in the mainstream USA a dollar turns over 9 times and about 7 times in China. In The Bahamas money comes into the economy and goes right out and so there is little or no multiplier effect so that is why it is so difficult to grow the economy. There is too much consumption and not enough investment. And in the tourist industry it is estimated that 95 cents of every dollar spent leaves the country. Most that is left is salaries, utilities and taxes. So while tourism may be listed as a multi billion dollar industry, the benefits to the country are minimal. The same with fishing and farming. There is very little processing, packaging and redistribution involved. And much of what is produced locally goes to service the tourists industry. And natural resources like salt and aragonite leaves the country without any contribution to the economy. To effectively grow the GDP and the wealth of the country and the wealth of the masses of the people, these things have to be fixed.
Millennial242 5 years, 12 months ago
Proudloudandfnm...not sure where you are getting your facts from, but outside of the Tourism sector..Freeport is thriving. Those in the industrial and maritime industry have seen significant growth in the past two years. The VAT department could confirm this easily...because they see the numbers coming in. The last two years have seen significant growth in the sector. But the tourism side of freeport has not.
sheeprunner12 5 years, 12 months ago
I agree with you M-242 ...... John & Proud do not seem to understand this simple fact.
Tourism does not fit into Freeport ....... this was forced fed by some fools Groves did not set up Freeport to have big hotels etc. That is what West/East End is there for ...... far prettier and able to develop eco-tourism etc.
John 5 years, 12 months ago
Sheeprunner you continue to demonstrate your raw ignorance. Tourism is what almost singlehandedly built the city of Freeport. Even when a lot of other industries failed, Tourism was still booming. But Freeport made a number of missteps. One is it overpriced itself, very much so. Another is that even though it was an upscale destination it tried to lure the cruise ship passengers. They came in numbers but they spent little or no money. And this led to an even greater demise of Freeport. And thirdly even the upscale US market has not yet recovered from the 2008 recession. Many properties in Freeport were left abandoned because it was cheaper to reclaim them than to maintain them unoccupied for 10! Years. The tourist industry is also changing. Evolving so to speak. When you go to properties like Bah Mar and Atlantis you hardly see any foot traffic beyond the gate. Just people being picked up or dropped off. Some don’t leave the property until they are headed back to the airport. So only the one hotel property on which they stay benefits from their visit
sheeprunner12 5 years, 12 months ago
You are right about overpricing ........ until the airfare/landing fees get sorted out, Freeport cannot attract much stopover traffic ....... and GB has the ability to sell 2 for 1 or 3 for 1 deals with Miami/Ft. Lauderdale or West Palm/Orlando because it is only 50 miles offshore, but it costs too much to travel by air from Florida. Anyway, Freeport is still better off creating its niche as an industrial/maritime capital, than tourism. Just stop whining.
paul_vincent_zecchino 5 years, 11 months ago
John, the US economy began to recover with President Trump's election, prior to his being sworn in. For the first time in years, there was optimism among citizens and businesses.
Real estate is at all time highs here, the stock market has been climbing with occasional corrective drops, brief in duration, then more rebounds.
The GDP is way up as compared with the past fifteen years or so. Housing starts are up everywhere, with the exception of northern cities run by tax and spend big-government leftists. The South is flourishing, Florida in particular.
All that means we have more wherewithal to travel to and spend in the Bahamas.
realitycheck242 5 years, 12 months ago
Freeport lost its tourism magic because of Las Vagas, atlantic city, and the Seminole casino's in Florida. The high rollers only travelled there to gamble because they could easily repatriate their winnings back to the US and not have to worry about uncle Sam's taxes. As soon as that became difficult to do because of all new OECD, FATF and EU requirements , travelling there to gamble made no sence. What the hurricane's did to the hotels was only icing on the cake for that industry's failure. The tourism model needs to be revamped with more emphasis on eco tourism smaller boutique type hotels.
joeblow 5 years, 11 months ago
One must wonder how much of the GDP increase was because of large cash infusions into various sectors of the economy by the PLP leading up to the election?
licks2 5 years, 11 months ago
Where did the PLP infused those large cash . . .I must have been living away from this pace. . .help us all find those places where this cash inflow was done!!
joeblow 5 years, 11 months ago
Its really quite simple. The government borrows several hundred million dollars in the months before election. They award various road work and construction contracts, hurricane clean-up contracts etc and increase government hiring before the election that creates the appearance of economic activity that can be positively reflected in GDP. What we do not know is how much this kind of voodoo economic activity contributed to GDP. Remember GDP does not take government borrowing into account!
Sign in to comment
Or login with:
OpenID