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.