The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Despite a 14 per cent increase in total exports, the Bahamas’ merchandise trade deficit increased by 5 per cent in 2012 to hit an all-time high of $2.818 billion.

The 2012 Trade Data report, just released by the Department of Statistics, disclosed that while Bahamian exports rose by some $101.8 million year-over-year, hitting $828.7 million in 2012, they continued to be overshadowed by the rise in imports.

Total imports rose by 6.9 per cent or $236.1million year-over-year, growing from $3.411 billion in 2011 to $3.647 billion last year.

As a result, the Bahamas’ merchandise (physical goods) trade deficit rose from $2.684 billion in 2011 to $2.818 billion last year, a rise of $134.4 million or 5 per cent.

“The balance of trade (total exports minus total imports) continued to result in a deficit, with the trade balance increasing by $134.3 million between 2011 and 2012,” the Department of Statistics report revealed.

“However, the percentage change in the trade balance between 2011 and 2012 was significantly lower (5 per cent) than it was (19.7 per cent) between 2010 and 2011.”

That percentage reduction was the good news. The data, and overall picture painted by the Department of Statistics’ report, is not surprising given that the Bahamas has traditionally been a major net importer of physical commodities.

This nation’s economic structure drives such trends, and the merchandise deficit has historically been balanced by the major capital account surpluses driven by foreign direct investment (FDI) and the tourism industry.

“The value of commodities imported into the Bahamas totalled some $3.6 billion, resulting in a moderate increase of nearly 7 per cent above 2011’s total of $3.4 billion,” the Department of Statistics report said.

Mineral fuels accounted for $875 million, or 23.9 per cent of all Bahamian imports in 2012, followed by machinery and transportation equipment, which accounted for $688 million or 18.9 per cent.

Fuels were broken down into diesel at $375.8 million; motor gasoline at $226.3 million; jet fuel at $88.7 million; and ‘other fuel oils’ at $80.4 million.

“Other major contributors to imports were the categories of manufactured goods, which accounted for 14.3 per cent of total imports and a total of $524 million, and the food and live animals category (fresh meats, fruits and vegetables and processed foods), which totalled $483.7 million (13.3 per cent of total imports),” the report added.

On the exports front, so-called ‘domestic exports’, meaning products that originated here, accounted for $337.5 million or 40.7 per cent of the total.

These consisted of chemicals, at $230.6 million or 68 per cent of total domestic exports, plus $82.2 million worth of food and live animals, which took a 24 per cent share. Crude minerals produced a 7 per cent share, or $23.9 million.

“Chemicals showed an increase of 9.3 per cent over 2011. Three commodities alone, ‘expansible polystyrene’ valued at $146.4 million, ‘other compounds containing a quinoline or isoquinoline ring’ at $75.6 million, and ‘spiny lobster tail frozen’ at $70.9 million accounted for some 86.8 per cent of total domestic exports,” the Department of Statistics report said.

When it came to trading partners, the report added: “While there was a significant volume of trade as it relates to imports between the Bahamas and Puerto Rico ($291.7 million) and Trinidad and Tobago ($142.8 million), the US ($2.8 billion) maintained its position as the Bahamas’ main trading partner, representing 76.5 per cent of total imports.

“In terms of exports, the US ($675.6 million), France ($25 million) and Canada ($25.1 million) were among the top partner countries, representing 81.5 per cent, 3 per cent and 3 per cent of total exports, respectively.”

But the Department of Statistics added: “Trade between the Bahamas and CARICOM countries was minimal, as the region represented less than 5 per cent of total imports and less than one fifth of 1 per cent of total exports.

“Oil products imported from Trinidad and Tobago, valued at nearly $141 million, accounted for 88.6 per cent of total imports from the region. Pharmaceutical products imported from Barbados and valued at $1.7 million (1 per cent of CARICOM imports) were again among the major imports from the region.

“As in 2011, Sea Salt (valued at $844,000) exported to Jamaica represented 57.6 per cent of total exports to the region in 2012.”