National

Moody’s Upgrade Good News, But Government Keeping Close Eye On U.S. Tariffs

NASSAU, BAHAMAS – The Bahamas has received a positive economic outlook upgrade from Moody’s, signaling that the country is moving toward greater fiscal stability.

Published

2 weeks ago

April 9, 2025

Italia Hall

NASSAU, BAHAMAS – The Bahamas has received a positive economic outlook upgrade from Moody’s, signaling that the country is moving toward greater fiscal stability. This comes as a result of the government’s efforts to reduce debt and increase revenue.

On the sidelines of a groundbreaking ceremony for the Coconut Grove Advanced Health Center, Economic Affairs Minister Michael Halkitis shared his thoughts on the upgrade.

Michael Halkitis – Minister, Economic Affairs
“Within the next six to 12 months, they will do further credit review, and the bias will be towards an upgrade. So it’s very encouraging, a positive sign for us.”

Halkitis emphasized that this upgrade could lead to lower borrowing costs for the country, noting that it was long overdue.

Michael Halkitis – Minister, Economic Affairs
“But be there as it may, they are very conservative. They produce these reports for investors who would then put their money on the line. And so what it, what it is bottom line, is that it’s an objective assessment of the economic picture, economic and financial picture of the country.”

While the outlook is positive at home, global concerns persist, especially with U.S. President Donald Trump’s tariffs on several countries, including The Bahamas. These tariffs have raised concerns among industry leaders, particularly in the pharmaceutical sector.

Health Minister Dr. Michael Darville acknowledged that his ministry is keeping a close watch on the situation.

Michael Darville – Minister, Health
“We are watching it very closely. We are in cooperation with the Ministry of Finance to see exactly how we would be impacted. But I’m certain that as we are now going through the budget cycle, the adjustments as a result of these increased tariffs would be taken into consideration, and it should be reflected in the budgets to ensure that we are able to provide the medication as well as the equipment, as well as all of the medical supplies necessary for us to be able to function.”

As of Wednesday, reports confirmed that President Trump implemented a 90-day pause on higher import duties for several countries but increased tariffs on China to 125%. Despite the global uncertainty, Halkitis remains hopeful that reason will prevail in the ongoing trade disputes.

Michael Halkitis – Minister, Economic Affairs
“I question the formula that says the US has a trade deficit with the Bahamas. You know, Bahamas imports virtually everything that it consumes from the US. So I struggled to see how we have a trade deficit with the US that would justify some sort of what do you call it? Reciprocal tariff could be that, we don’t make these policies. We have to remain vigilant. You know, as I said before, our concern is, should this back and forth, tariff tit for tat, tariff raising between the major economies lead to a decline in the global economy, then, you know, we have reason to be concerned, because we’re small, open economy.”