‘I’ve never seen it more positive for the Bahamas’

As of Tuesday, January 13, 2015

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Bahamas is well positioned to benefit from anticipated improvement in some of the world’s leading economies, a local investment banker believes.

Michael Anderson, RoyalFidelity Merchant Bank & Trust’s president, told Tribune Business: “I don’t think I have ever seen things in a more positive light than I see at the moment in terms of positioning for the Bahamas, in terms of the infrastructure we have built over the last several years during the recession, a new hotel like Baha Mar, potential development of the harbour front.

“I think international economies, the ones that really impact us like the US, the UK, Europe; they are really starting to emerge again. I think as much as we were hurt by the recession, I think we are going to benefit from the improvement in those economies. I think we are well positioned for it and I think the global economies are likely to positively impact us going forward.”

Mr Anderson said that “symbolic” of the improved outlook for the Bahamas was the recent announcement that Chinese president, Xi Jinping, had agreed “in principle” to allow the Bahamas to be a country where debts involving international parties can be settled, while also approving this nation as only the third jurisdiction to trade in Chinese denominated currency, the Renminbi (RMB) or yuan.

Mr Anderson said: “It’s like most things we do. It’s like when you build infrastructure; it creates potential. These agreements create potential for businesses doing business in the Bahamas to add value to their business.

“Once that gets set up I think it is up to us to figure out how we take advantage of it. These are symbolic of the improvements we see happening in the Bahamas that are bound to actually help. “

He added: “ There are hurdles and problems, but what we really see happening is the global private sector initiatives really start to make some impact going forward. I believe that over the next couples of years we will really start to see the benefit more broadly in our economy, even though people don’t feel it at the moment.

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banker 9 years, 10 months ago

What world does Michael Anderson live in? I would suggest that he drive down East Street for the first time in ten or twenty years. And this guy is looking for investment money based on his prognostications?

Yes the American economy is recovering. The Canadian economy dips because of resource issues like the low price of oil, but can be offset by strong sectors such as knowledge based and manufacturing industries. Europe is a mixed bag.

None of this will trickle down to the Bahamas. The latest figures show that only 17% of the tourists even get off the cruise ships in the Bahamas. Airlift is deteriorating. Financial services is in a freefall in the Bahamas. The economy is moribund. VAT will be an anchor. The government doesn't know how to balance a budget and fiscal and monetary policy is non-existent run on an ad-hoc basis by a brain-dead Prime Minister who is also the finance minister and doesn't have a clue about economics.

The economy is on a downward trajectory and there are no market forces to stop it. The fundamentals and technicals are in an overall negative state. Every summer, 3,000+ school leavers enter the job market. Baha Mar is supposed to be a great hope, but they will have trouble filling rooms with a tired tourism product.

Again, I ask, what world does Michael Anderson live in? If there is a real parallel universe that he inhabits, I would like to join him. If it's a Bob Marley life-style, then perhaps he can be excused for his grandiose pronouncements, but they shouldn't get the ink that they do.

John 9 years, 10 months ago

Is the Bahamas making a mistake by heavily aligning itself with China when all indications are that China is sliding into a recession? While the Western world and UK seem to be climbing out Even though slowly, China seems to be on a downward spiral. What happens if the Bahamas ties up its debts with China and that nation becomes hungry for cash?