NASSAU, Bahamas, CMC – The Central Bank of the Bahamas (CBB) says provisional data suggest that during November, the domestic economy sustained its growth momentum, albeit at a tempered pace compared to the preceding year
“In particular, economic indicators continued to trend closer to their expected medium-term trajectory,” the CBB said in the Monthly Economic and Financial Developments (MEFD) November 2024 report.
It said that the tourism sector activity continued to expand, although slowed, as strong growth in the cruise segment contrasted with accommodation capacity constraints in the high value-added stopover component.
In price developments, the CBB said average consumer price inflation, as measured by changes in the average Retail Price Index (RPI) for The Bahamas, slowed during the 12 months to September 2024 relative to the comparative 2023 period. This reflects a moderation in price pressures for imported fuel and other goods and services.
On the fiscal front, preliminary data on the government’s budgetary operations for the fiscal year 2024/25 showed that the deficit widened vis-à-vis the same quarter in the financial year 2023/24, as the growth in aggregate expenditure overshadowed the rise in total revenue.
The CBB said that monetary sector trends were marked by an expansion in bank liquidity despite domestic credit growth exceeding the deposit base’s buildup.
Meanwhile, it added that the decline in external reserves moderated considerably, owing primarily to net foreign currency inflows through the private sector, which offset net public sector outflows.
The CBB said that during November, the tourism sector continued to expand, although at a more moderated pace. This is reflective of robust gains in the cruise market, as opposed to constrained stopover capacity.
According to the latest data from the Ministry of Tourism, total arrivals increased to 0.7 million visitors in October from 0.6 million in the comparable 2023 period.
Underlying this development, the dominant sea component grew by 25.2 percent to 0.7 million. In contrast, the high-value-added air segment decreased by 9.4 percent to 83,263 visitors.
Year-to-date, total arrivals grew by 16.6 percent to 9.1 million compared to the previous year. Reflecting this outcome, sea traffic advanced by 20.2 percent to 7.0 million, while air passengers rose by just 0.2 percent to 1.4 million.
The most recent data provided by the Nassau Airport Development Company Limited (NAD) showed that total departures decreased by four percent to 113,739 in November compared to last year.
Specifically, United States departures fell by 5.9 percent to 94,994. However, international departures increased by 6.5 percent to 18,745, relative to the comparative period of the prior year.
Regarding the short-term vacation rental market, the CBB said estimated inflows strengthened.
Data provided by AirDNA indicated that the total number of room nights sold grew by four percent to 42,937in November, relative to the same period in the preceding year.
Meanwhile, the average daily room rate (ADR) for entire place listings rose by 7.5 percent to US$725.38. In contrast, the average daily room rate for hotel comparable listings declined by 0.7 percent to US$185.60.
Year-to-date, total room nights sold rose by 5.8 percent, attributed to gains in hotel comparable bookings (7.3%)and entire place bookings (5.2%).
The CBB said that provisional data on the government’s budgetary operations for the first quarter of this financial year indicated that the deficit widened to US$185.4 million from US$ 61.5 million in the same period last year.
It said contributing to this outturn, aggregate expenditure increased by US$142.6 million to US$867.7 million, overshadowing the US$18.7 million growth in total revenue to US$682.2 million.
The CBB said that a US$ 12.5 million rise led to a gain in revenue collections in tax receipts.
In particular, taxes on international trade and transactions advanced by US$15.2 million to US$187.2 million relative to the same period last year, underpinned by a US$26.4 million expansion in departure taxes to US$75.9 million and a US$3.3 million increase in customs and import duties to US$64.5 million.
In addition, tax revenue from the use or supply of goods & services increased by US$9.5 million to US$ 28.3 million due to increased proceeds from business license fees company and motor vehicle taxes.
Further, property taxes grew by four million US dollars to US$25.4 million. In an offset, taxes on goods and services fell by US$5.3 million to US$403.5 million, reflecting no receipts from specific taxes, mainly gaming, and a falloff in collections from excise taxes by US$13.4 million to US$0.4 million, which overshadowed the increase in collections from stamp taxes on financial and realty transactions and VAT receipts.
Moreover, the CBB reported that general stamp taxes decreased by US$1.4 million toUS$0.2 million.
Non-tax revenue rose by US$6.2 million to US$66.0 million, attributed to a US$4.3 million increase in proceeds from the sale of goods and services to US$59.3 million, explained by a rise in receipts from immigration, customs, and “other” fees.
Collections from property income also advanced to five million US dollars from just US$1.5 million a year earlier. Further, revenue from fines, penalties, and forfeits and the sale of other non-financial assets stabilized at US$1.4 million and US$0.4 million, respectively, relative to the first quarter of this financial year.
In contrast, miscellaneous and unidentified revenue, reimbursements, and repayments declined to negligible levels. Regarding expenditures, recurrent spending expanded from US$83.5 million to US$743.9 million.
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