The Tribune

BY NEIL HARTNELL

TRIBUNE Business Editor

nhartnell@tribunemedia.net\

THE BAHAMAS’ trade deficit increased by almost $250m year-over-year during the 2026 second quarter despite a more-than $57m jump in goods exports.

The Bahamas National Statistical Institute (BNSI), in unveiling the foreign trade statistics for the three months to end-June 2026, disclosed that the deficit - which measures by how much this nation’s goods imports exceed the exports it sells into other nations - had increased by 23.4 percent from $1.07bn during the same period last year to $1.321bn

The expanded second quarter deficit, which has been revealed just as Bahamian exports come under further pressure from the Trump administration’s 12.5 percent tariff, was generated despite a 33.3 percent increase in exports from $172.036m in the 2025 second quarter to $229.254m this year.

However, this was overshadowed by a 24.7 percent hike in imports, which rose from $1.242bn to $1.55bn. The US accounted for the majority of the latter at $1.277bn or 82.3 percent.

The Bahamian economy’s structure, which results in this nation importing most of what it consumes, means it has always traditionally incurred large trade deficits. These, though, only capture the trade in goods and do not include the large surplus generated by the primarily service-based economy and its tourism, financial services, real estate and construction industries.

But, while services-related foreign currency inflows finance and cover the trade deficit, the latter’s increasing size means that earnings from the likes of tourism and financial services are coming under growing pressure to expand at the same pace to sustain this. However, others have argued that increased imports are a sign of a healthy economy represented by growing demand and increased activity.

“The value of merchandise trade imported into The Bahamas totalled $1.6bn during the second quarter of 2026,” the BNSI report said. “This represents an increase of 24.8 percent compared with the corresponding quarter of 2025.

“In the second quarter of 2026, ‘machinery and transport equipment’ was the largest import commodity group, with imports valued at $435m, accounting for 28.1 percent of total imports. This was followed by ‘food and live animals’, valued at $247m (15.9 percent), and ‘mineral fuels, lubricants and related materials’, valued at $239m (15.4 percent). Collectively, these three commodity groups accounted for 59.4 percent of the merchandise imports.

“Other significant import commodity groups included ‘manufactured goods classified chiefly by materials’ which accounted for $210m; ‘miscellaneous manufactured articles’ valued at $183m; and ‘chemicals’ at $92m. Together, these commodity groups accounted for 31.3 percent of total merchandise imports during the second quarter of 2026.”

As for exports, the BNSI said: “Machinery and transport equipment’ was the largest export commodity group, valued at $99m and accounting for 43.1 percent of total exports. This was followed by ‘‘manufactured goods classified chiefly by materials’, valued at $47m or 20.7 percent, and ‘mineral fuels, lubricants and related materials’, valued at $44m or 19.1 percent.”