Central Bank Governor: “Bahamian Economy Expanded at a Slower Pace”

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NASSAU, BAHAMAS – The Central Bank of The Bahamas giving an update on the Bahamian economy during the release of its quarterly report Monday morning.

Central Bank of The Bahamas governor John Rolle telling reporters today that stagnant tourism numbers, inflation, and the ongoing global trade war have had a significant impact.

The Bahamian economy expanded at a slower pace during the first quarter of 2025, compared to the same quarter in 2024.

During a press conference this morning, Rolle says the economy is moving closer to its expected medium-term potential.

John Rolle – Governor of Central Bank of The Bahamas

“In the latest estimates, average retail price inflation. Moderated significantly, because of reduced cost pressures on imported goods and services, and savings on electricity costs. In line with moderated net private sector inflows and in the absence of net foreign currency borrowings by the public sector, seasonal growth in bank liquidity and external reserves tapered when compared to the same period in 2024.”

Rolle also says the country continued to attract healthy foreign investment, providing a boost to the construction industry and related jobs.

Still, there were other industries that weren’t so lucky, like the tourism sector.

According to the Central Bank governor, constrained capacity underpinned slower quarterly earnings potential this year when compared to 2024.

John Rolle – Governor of Central Bank of The Bahamas

“Commercial banks’ net foreign currency sales to the central bank contracted by approximately 10.0 percent. This outcome, along with a net sale of foreign currency by the central bank to the public sector, as opposed to a sizeable net purchase of foreign currency borrowing proceeds in 2024, resulted in a two-third reduction in the seasonal growth in reserves during the first quarter of 2025.”