By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The Bahamas is becoming ever-more reliant on New Providence to generate three-quarters of its annual economic growth with the Family Islands’ combined contribution having reduced to 11 percent of GDP.

The Department of Statistics, in their inaugural report on gross domestic product (GDP) contribution estimates by island for the years 2015-2020, said New Providence’s share of national economic output had risen from 70 percent at the start of that period to just under 75 percent by 2020.

“Of the 2020 GDP of $9.908bn in nominal (current) dollars, New Providence (NP) represented $7.422bn (74.9 percent), Grand Bahama (GB) $1.437bn (14.5 percent) and the Family Islands (FI) the remaining $1.048bn (10.6 percent),” the Department of Statistics said.

The figures come as little surprise, given New Providence’s population and economic concentration. Nassau and outlying communities continue to attract the bulk of investments and economic activity, while the Family Islands and their populations continue to shrink.

A prominent realtor recently said many Family Island economies are hindered by a lack of infrastructure, with many requiring a first mover to kickstart development. David Morley said this had deterred himself and his late father from making significant investments in the southern Family Islands.

The Department of Statistics report follows the prime minister’s recent announcement that the southern Bahamas will now be designated a special economic zone, with import duty and VAT waived on building materials. VAT on real estate sales worth less than $500,000 will either be waived or discounted in a bid to spur economic activity on those islands.

Mr Morley, though, said it would be difficult to ask someone to leave New Providence, where all the jobs and opportunities are, to go to a far-flung Family Island with no way of sustaining their quality of life or accessing necessities.

The Department of Statistics report said Family Island GDP contributions for 2020 can be disaggregated into “Eleuthera, $269m (2.7 percent); Abaco, $243m (2.5 percent); Exuma, $137m (1.4 percent); Andros, $107m (1.1 percent); Long Island, $74m, (0.7 percent); Mayaguana, Acklins, Crooked Island and Inagua, $103m (1 percent); Bimini and the Berry Islands, $47m (0.5 percent); Cat Island, San Salvador and Rum Cay, $35m (0.4 percent); and the remaining Family Islands, $34m (0.3 percent).”

Grand Bahama, meanwhile, saw its GDP contribution contract from a high of 17 percent in 2015 to now 14.5 percent in 2020. Noting that Grand Bahama “rebounded” from the devastation of Hurricane Matthew in 2016, with growth back on a steady pace in 2018, the report said the island was further setback in 2019 by Hurricane Dorian before reconstruction efforts were halted by the COVID-19 pandemic.

Abaco’s GDP contribution shrank between 2015-2020 from 4.5 percent to now 2.5 percent of Bahamian GDP, with the decline again caused by the combination of Hurricane Dorian followed by the COVID-19 pandemic.