Thursday, March 12, 2020

Bahamas On Cusp Of Recession, Says Ex-Finance Minister

By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net

A former finance minister yesterday argued that The Bahamas stood on the threshold of another recession with the coronavirus likely “to knock a few more points of our GDP”.

James Smith, pictured, also an ex-Central Bank governor, told Tribune Business that the Covid-19 outbreak only “adds to the headwinds” The Bahamas is facing post-Dorian having failed to completely recover from the 2008-2009 recession.

#Warning that the full impact from the coronavirus has yet to fully work its way through the Bahamian economy, with much depending on the extent of the outbreak, Mr Smith said the effects to-date appeared to be more “subtle” and not as easily visible as in previous external shocks.

“I think it’s going to add to the headwinds we’re already facing in terms of slow growth and the after effects of Dorian,” he told this newspaper. “We have still not emerged completely from the 2008 recession. This is the reason for the high unemployment figures and pretty much flat or negative growth we’ve seen.”  Read more >>