The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chairman yesterday described as “stretch targets” this nation’s GDP growth projections for the next two years, even though the Government appears not to have revised its forecasts.

Gowon Bowe told Tribune Business that the 2.8 per cent GDP growth projection for 2016 was “optimistic”, and added that it was unclear what could replace Baha Mar to help meet this year’s 2.3 per cent forecast if the project did not open soon.

“The 2.8 per cent is a stretch target, and I would say probably on the optimistic side,” Mr Bowe told Tribune Business. “And if Baha Mar does not come on stream later in the year, what will be the intervening pick-up.”

Prime Minister Perry Christie yesterday glossed over the Baha Mar delay, and dispute between the developer and its Chinese construction partner, other than to say he was involved in trying to mediate a resolution that he expected to emerge shortly along with a projected opening date.

He gave no indication that the Government had revised its economic growth estimates for 2015 and 2016, but agreed that the Bahamian economy is not expanding fast enough to dent an “unacceptably high” 31 per cent youth unemployment rate and absorb new workforce entrants.

“It is abundantly clear from these developments that we must, as a high priority, target an appreciable and sustained increase in the rate of economic growth, as well as seek to better position the youth of the country for the emerging job opportunities that will flow from enhanced growth,” Mr Christie said, also unveiling a $20 million spending allocation to tackle this in the 2015-2016 Budget.

And he reiterated: “In its latest World Economic Outlook of April 2015, the IMF projects that the rate of growth of our economy will increase to 2.3 per cent in 2015 and further to 2.8 per cent in 2016.

“While this is concrete progress indeed, I will reiterate that we must do considerably better still on the growth front if we are to successfully create the jobs required to get to a significantly lower rate of unemployment as well as accommodate our growing labour force.”

Elsewhere, Mr Christie said the Government had allocated “seed capital” in the 2015-2016 Budget to “promote” $200 million in public-private partnership infrastructure investments.

These will focus on upgrading Family Island roads, bridges and airports; constructing and repairing government buildings; and spending on health care infrastructure and schools.