National

Nobel Prize Laureate Discusses U.S. Recession Impact

NASSAU, BAHAMAS – A Nobel Prize winner is painting a grim picture of the Bahamian economy should the United States’ economy go into a recession.

Published

1 year ago

February 9, 2023

Berthony McDermott

NASSAU, BAHAMAS – A Nobel Prize winner is painting a grim picture of the Bahamian economy should the United States’ economy go into a recession.

Nobel Prize Laureate Christopher Sims says tourism-reliant countries like The Bahamas will certainly take a hit.

Sims says if the U.S. manages to dodge a recession in the short term, it could pose a bigger issue later.

Local economists have boasted of a strong bounce back in the Bahamian economy, as tourism numbers soar.

Sims says data for the American economy continues to look much stronger than many expected. But what would that mean for tourist-reliant countries like The Bahamas?

Sims’ comments came on the sidelines of the Macroeconomic Caribbean Conference.

He won a Nobel Prize in 2011 for his empirical research on cause and effect in the macroeconomy.

Sims says employment is high in the U.S. and while there is inflation, he says incomes are growing, however, he says the impact on countries in the region can vary.