Central Bank Governor: U.S. Elections Could Impact Local Economy

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NASSAU, BAHAMAS – As the Central Bank predicts, economic growth will slow in 2024, Governor John Rolle says the global political environment could shape what happens here in The Bahamas.

It comes as our closest neighbors to the north are hours away from a historic election, as U.S. Vice President Kamala Harris goes head to head with former president Donald Trump.

Rolle says it’s anticipated that there may be uncertainty amongst travelers.

“It means that there is still a significant portion of the us consumer base where getting beyond the election is expected to shift the way they start to position themselves with expenditure and otherwise,” Rolle said.

But Rolle says what matters most outside of the election will be the overall performance of the U.S. economy.

The Central Bank governor adds the uncertainty in the global political environment including the wars in eastern Europe poses downside risks to tourism and foreign investments.

 Visitor arrivals rose to 16.3% which is less than half of the rate of growth in 2023.

The stopover sectors experienced constrained hotel room capacity causing a marginal increase in 2024.

The vacation rentals sector also saw a drop.

“In 2024, these properties have experienced incremental declines in bother average prices and average occupancy rates compared to the first two quarters of 2023,” Rolle said. “

This shift which is maintained over an extended period could begin to dampen new investments targeted at this segment.”