Reports

IMF Article IV Consultations

Friday December 2nd, 2011

In the context of the 2011 Article IV consultation with The Bahamas, the International Monetary Fund (IMF) has released the following documents:

  • Staff Report
  • Informational Annex
  • Public Information Notice (PIN)
  • Executive Director’s Statement

The reports indicate that the economy is beginning to recover. Real GDP is projected to grow at about 2 percent in 2011, owing to an improvement in tourism and the start of large investment projects. Government revenue remains low. Substantial projected foreign direct investment (FDI)-related imports and higher oil prices will widen the external current account, but the reserves position will remain reasonably strong.

The key policy priority is implementing a sustained fiscal consolidation, to lower the public debt-to-GDP ratio.

The staff assessment outlines the medium-term challenges facing The Bahamas, namely to safeguard fiscal sustainability and financial sector stability, while cultivating a more accommodating growth environment. The report provides a credible menu of policy options, which the IMF Staff says are mostly in tune with initiatives already in train or envisioned by the authorities.