IMF Points to Our Country’s “Remarkable Recovery”
The Davis administration entered government at a time of profound crisis. The government moved immediately to end harmful policies, offer relief to Bahamian families, stabilize the nation’s finances, and boost economic growth.
Today’s IMF report, which refers to our country’s “remarkable recovery”, acknowledges our country’s progress moving from crisis to growth.
While there is much more work ahead, many more Bahamians are now working, and inflation is now below pre-pandemic levels. Public finances are improving, borrowing costs are declining, and the nation is on a stronger, more sustainable path forward.
The recommendations made by the IMF are consistent with those made to previous administrations.
However, just as we did not follow the 2021 recommendation to raise VAT to 15%, we have no intention of raising VAT. The global inflation crisis has led to higher prices in our country, adding to cost-of-living burdens for Bahamians.
The Davis administration is implementing the nation’s first comprehensive energy reforms, including the first utility-scale solar farms, to reduce prices for homes and businesses and to strengthen our electricity grid. Lower electricity prices and stable electricity supply are essential to supporting further economic growth and to encouraging investment by a new generation of Bahamian entrepreneurs.
This administration will continue to implement reforms and deliver progress while addressing the unique challenges of an archipelagic nation.