By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
CONCERNS over potential credit downgrades will become "a thing of the past" once this nation can realise real economic growth, a top private sector executive said yesterday, noting that commitments to improve the ease of business and transparency in government must materialise.
Edison Sumner, pictured, Bahamas Chamber of Commerce and Employers Confederation (BCCEC) chief executive told Tribune Business: "We shouldn't just be looking at upgrades and downgrades. One of the ways we can ensure we aren't susceptible to any further downgrades is to continue to grow the economy. We have to improve the ease of doing business as well as transparency and accountability in government.
"Once we demonstrate that we can put measures in place and show we can grow the economy then any sort of list or downgrade will become a thing of the past."
Mr Sumner said government must live up to its obligations, improve the ease of doing business, reduce the cost of energy and look at our tax measures.
"The agencies are looking to see whether the government is living up to its commitments to put these things in place," he said.
"Government must demonstrate that the targets outlined in the budget are going to happen. If we fail to hit our targets it gives the ratings agencies reason for further reviews and downgrades."
Moody's in an updated credit opinion last week said strengthening in The Bahamas' tourism sector and continued foreign direct investment projects will help sustain growth in the range of 1.5 to two percent over 2018-2019.
The credit ratings agency maintained the country's Baa3 credit rating with a negative outlook.
This outlook, it said, "reflects potential downside risks to the fiscal consolidation process posed by weaker-than-expected growth, exposure to climate-related shocks in the form of hurricanes, and implementation risks associated with measures to rein in expenditure growth and increase revenue intake". Moody's' warned that absent successful fiscal consolidation, The Bahamas' fiscal and credit profile would likely weaken.
Comments
John 5 years, 7 months ago
When the radio and tv stations give the weather report and give the high temperature, they will say something like "the high temperature expected is 97, but it will feel like 103 degrees.' The point is we already know it is summer and, everyone knows it is hot outside. And everyone should also know the financial crisis that started in 2008, is not over yet. And a lot of countries like Germany, and Greece and yes, The Bahamas may not have bottomed out of the financial ditch. And even though there are signs stronger than ever that the overdue turn around is in the making, you cannot react drastically, every time the pendulum swings to the left or even to the right. Yes, the government must still exercise caution especially when it comes to borrowing and spending but remember that it was Barak Obama's, bailing out of the US banks and car companies that set the US on a solid financial footing and have that country showing more signs of financial recovery than almost any other country. Donald Trump came in and met the car already full of fuel and the recovery map already drawn. and with his own character and promotion skills, he was able to maximize the recovery.
John 5 years, 7 months ago
And if you think we have problems...: "Venezuelan Bolivar 1988-2018 | Data | Chart | Calendar | Forecast | News Venezuela introduced a new currency, the sovereign bolivar, on August 20th 2018, in an attempt to curb hyperinflation and economic crisis in the country. The new bolivar is anchored to the Petro, an oil-backed digital cryptocurrency launched in February. The exchange rate of the Petro cryptocurrency is fixed at $60, or 3,600 redenominated bolivars. The announcement was made by President Nicolás Maduro on August 17th. At the same time, the bolivar was devalued by near 96% from the current rate of 248520 per USD. To compensate for the devaluation, the President also announced a massive 3500% rise in the minimum wage to half a petro (1,800 sovereign bolivars), starting from September. It represents the fifth rise in minimum wages this year. Historically, the Venezuelan Bolivar reached an all time high of 248520.90 in August of 2018 and a record low of 0.05 in January of 1989."
John 5 years, 7 months ago
And the Government of Venezuala just met to pass a law allowing them to print currency without the trailing three zeros. So a 1million note will be printed 1,000 instead of 1,000,000. the bolivar is 1million bolivar to $1 with the US dollar.
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