The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Four sectors were yesterday identified as key drivers of The Bahamas’ 1.6 percent real GDP growth in 2018 that was hailed as the first decent expansion for five years.

Private sector performance drove the growth, according to national accounts data published by the Department of Statistics (DOS), which included annual and quarterly figures for real gross domestic product (GDP).

“In 2018, nine of the 17 industry groups contributed to the overall increase in real GDP. However, increases in real estate, the wholesale and retail trade, accommodation and food services, and financial and insurance services were the leading contributors,” the Department of Statistics report said.

It added that real estate industry output increased by $16m or 0.9 percent to $1.764bn; the wholesale and retail trade (including vehicle repairs) expanded by $43m or three percent to $1.449bn when compared to 2017; and the accommodation and food services industry showed a combined output increase of $253m, influenced by the 7.9 percent rebound in 2018 tourist arrivals, to hit $1.054bn.

The financial and insurance sector’s output contribution grew by $42m or 4.2 percent to $1.038bn when compared to 2017. This is supported by more favourable developments in domestic credit extended by the financial institutions compared to the previous year.

The Ministry of Finance, in a statement, said the decline in general public expenditure was “unsurprising” given the government’s cost containment and fiscal responsibility policies. “This had no dampening economic impact given the strong private sector performance,” it said.

“Household consumption increased by $140m, and exports of goods and services increased by $244m. The rebound in tourism, which continues to benefit from a combination of healthy gains in air visitor arrivals, increased room availability and expanded airlift, was further observed by the real growth in the accommodation and food services industry.

“There is no doubt this performance is also having positive impacts on wholesale and retail trade, and general improvements in consumer and business confidence have translated into the observed increase in consumption by households and in business spending.”

According to the report, The Bahamas GDP was $12.424bn in nominal or current dollars, and $10.763bn in real or constant dollars in 2018.

“When compared to the same period of 2017, this represents an increase of 2.3 per cent in nominal growth and real growth of 1.6 per cent,” the report said.

The Department of Statistics’ added that household expenditure increased by $140m or 1.9 percent; exports of goods and services increased by $244m or 6.3 percent; and imports of goods and services decreased by $23m or 0.4 percent.