The Tribune

By FAY SIMMONS

TRIBUNE Business Reporter

jsimmons@tribunemedia.net

THE OPPOSITION’S finance spokesman yesterday said the Government’s touting of its economic performance is failing to match the reality facing many Bahamian households as he pointed to weaker growth alongside persistent cost of living pressures.

Speaking in Parliament yesterday, Kwasi Thompson, the east Grand Bahama MP, said the Government could not rely on projected fiscal surpluses and headline economic figures while Bahamians continued to struggle with the cost of food, electricity, gasoline and other basic necessities.

He pointed to recent assessments from international rating agency Fitch, which reported that the Bahamian economy contracted by 1.4 percent in the fourth quarter of 2025 - the first quarterly contraction since 2020 -  and forecast economic growth slowing from 3.8 percent in 2025 to 1.8 percent this year.

“This dramatic loss of economic momentum demands an explanation from the Government,” said Mr Thompson. He also pointed to inflationary pressures, noting that the Bahamas National Statistical Institute (BNSI) reported inflation at 4.2 percent in the 2026 second quarter.

The latest July CPI data subsequently showed annual inflation of 3.6 percent, while transportation costs were up 12.9 percent year-over-year. Gasoline prices rose 21.4 percent and diesel increased by 33.4 percent over the same period.

Mr Thompson argued that the combination of slower growth and higher costs presented a more important measure of economic performance than the Government's fiscal projections.

“The economy is slowing while the cost of living most certainly is rising,” he said. “Government cannot simply point to a headline economic number and tell Bahamians things are getting better when too many families are experiencing something very, very different.”

Mr Thompson said responsible public finances remained important because many Bahamians depend on government-supported services and assistance, particularly those who cannot simply absorb higher household costs.

He also questioned whether the Government's projected surplus would translate into meaningful relief for households facing higher expenses. “Bahamians live in the real economy. They feel it at the food store, at the gas pump, in their electricity bills and in their pay cheques,” said Mr Thompson.

The Government's fiscal projections have pointed to a surplus for the 2026-2027 financial year, while the Central Bank has said the domestic economy maintained positive growth during the second quarter, supported by tourism and construction activity. It also noted, however, that inflationary pressures increased as higher global oil prices passed through to imported fuel and other goods and services.

Mr Thompson said the Government's economic policies should ultimately be judged by whether households are becoming better able to meet their expenses and build wealth, rather than by fiscal and economic indicators alone.