The Tribune

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

FORMER State Minister for Finance Kwasi Thompson said the recent quarterly review by the Central Bank of The Bahamas proves the economic policies implemented by the Minnis administration were having a positive impact on the Bahamian economy.

With a new government in place, he is concerned that sudden changes could “derail the country’s economic and fiscal recovery”.

In a statement issued last week, Mr Thompson referred to the Central Bank’s June 2021 Quarterly Economic Review and a statement recently released by Moody’s that showed some improvement and growth in the country’s economy.

“I am pleased that the Central Bank’s June 2021 Quarterly Economic Review has confirmed that the domestic economy stabilised during the second quarter of 2021, despite the ongoing spread of the novel coronavirus (COVID-19) pandemic,” he said.

“This is confirmation that the economic policies implemented by the Minnis administration were having positive affects on the Bahamian economy.”

Additionally, Mr Thompson noted that the Central Bank has also confirmed “that the government’s overall deficit narrowed during the fourth quarter” of the 2020/2021 fiscal year, relative to the same quarter in the 2019/2020 fiscal year.

It further continued: “Underlying this out-turn, aggregate revenue increased considerably, led by gains in value-added taxes (VAT) receipts, which overshadowed the rise in aggregate expenditure.”

The Grand Bahama MP said this again confirmed that the Minnis administration’s recovery plan was taking shape with increased revenue and narrowing of the deficit.

“It is clear, while we have a distance to go for full recovery, we have turned a corner,” he stated.

“This is consistent with the Minnis administration’s previous statements and now confirmed by the Central Bank of the Bahamas.

He said that tourism and construction industries continue to improve.

Referring to more positive news, Mr Thompson noted a recent statement released by Moody indicates that the economy is predicted to grow by eight percent, four times faster than the anticipated two percent.

“It is also clear that Moody’s expects our recovery to be based on some of the same policies, initiatives, and legislative reforms of the Minnis administration,” Mr Thompson said.

“We are hopeful that before any major economic changes or tax reform as was pledged by the Minnis administration, there are proper studies, analysis, diagnosis, and consultation. Sudden changes, though well-meaning, can derail the economic and fiscal recovery. We, therefore, stand ready to assist to ensure the country’s economy fully recovers,” he said.