An International Monetary Fund mission that visited the country recently provided a bleak picture of its economy. The Bahamas was greatly affected by the recent global economic crisis, the IMF team said, noting that there was a sharp contraction in local economic activity, higher rise in unemployment, drastic drop in the tourism sector and a fall in foreign direct investments. Lower import prices did, however, help narrow the country’s budget deficit to approximately 12.5 percent of the gross domestic product. The team said that the economy could grow modestly in fiscal 2010-11 if the country strictly implements fiscal consolidation and work to improve its business investment climate.

About the author

  • Ivy Mungcal

    As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.