The Bahamas economy grew by 2.3% in 2018. The main drivers of the recovery were higher growth in the United States (US), increased room capacity in the tourism industry, and increased construction activity. Consequently, there was a slight decrease in the unemployment rate. Inflation rose in line with higher economic activity.
The fiscal performance of the Government of The Commonwealth of the Bahamas (GOCB) improved in 2018. As a percentage of gross domestic product (GDP), the primary balance improved. Central Government (CG) debt was slightly higher at 57.4% of GDP. External balances also improved as a result of increased tourism receipts. In addition, the financial sector remained profitable and well capitalised, although private sector credit continued to decline.