$436 Million More from Food Services says Bahamas Nat’l Statistical Institute, 10.8% economic growth

Garfield Ekon

Staff Writer

The Bahamas, August 8, 2024 – The economy of Grand Bahama has recorded a 10.8 % growth, while New Providence, produced “unmatched” economic expansion in 2023, according to the Bahamas National Statistical Institute (BSNI).

In its latest report on the island’s Gross Domestic Product (GDP) contribution between 2015 and 2023, the BSNI said the annual GDP trends for New Providence showed unmatched levels in 2023, when compared to any other year, and economic activity in the capital increased by 11 percent, when compared to the previous year with industries connected to the tourism sector contributing the lion’s share of the increase.

“Accommodation and food services showed an increase of $436million, and arts, other services and household employment, extra-territorial organisations increased by $208 million. In 2023, New Providence represented 77 percent of the overall economy of the island’s economic contribution jumped from $9.937 billion in 2022 to $11.027 billion, representing a nine-year high in The Bahamas,” the report said.

Most of the industries reported gains slightly above 2022, while Abaco remains the third largest economy in The Bahamas in 2023, representing 3.5 percent of the total GDP of the island.

According to the report, the impact of tourism on the islands was evident beginning in 2020, although exponential growth was experienced during the period 2021 to 2023. The industrial grouping, real estate, owner-occupied and actual rents led the increase at 28 percent, while the accommodation and food services, arts, other services, household employment, and extraterritorial organisations grew by 23 percent compared to 2022.

The 2023 GDP for Mayaguana, Acklins, Crooked Island and Inagua showed an increase of 24 percent over the previous year. For the period 2015 to 2023, the year 2023 reported the highest level of growth.

“The combined group of mining and quarrying, manufacturing, electricity and gas, water supply and sewerage, and construction was responsible for the majority of the increase, or $22 million of the overall increase of $31milion,” the BSNI report said.

Overall, New Providence remained the economic powerhouse, accounting for 77 percent of the Bahamas’ GDP in 2023, and  was driven by a robust 11 percent increase in economic activity, mainly in the services sector.