Bahamas FDI inflows fall by some 29%

As of Monday, June 2, 2014

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Foreign direct investment (FDI) inflows into the Bahamas fell by 29 per cent year-over-year in 2013, a United Nations (UN) body has reported.

The UN’s Economic Commission for Latin America and the Caribbean (ECLAC), in a report released late last week, said the key FDI foreign currency ‘lifeblood’ for the Bahamian economy dropped to $410 million last year, down $165 million from the prior year’s $575 million.

These statistics were close to the Central Bank of the Bahamas’ data unveiled in last week’s 2014-2015 Budget presentation. It reported a 27.4 per cent or $143.9 million drop in direct investment inflows to $382.3 million, with FDI’s ‘equity component’ down 40.7 per cent or $208.6 million to $304.1 million.

The Central Bank said the prior year figures were boosted by “the sale of a major resort to an investor”, likely the Atlantis debt-for-equity swap with Brookfield Asset Management.

Net real estate sales, though, “rose nearly five-fold” to $78.1 million due to increased high-end property sales/

The ECLAC report, meanwhile, noted that FDI inflows into the Bahamas last year were equivalent to around 5 per cent of this country’s gross domestic product (GDP).