Private Sector Driving Growth

Addressing the July 29th annual Investment Conference of the Bahamas Society of Financial Analysts, the Deputy Governor of The Central Bank of The Bahamas pointed out that the private sector – not the government – will be the primary engine for the economic growth of the country in the years ahead.

According to DG Wendy Craig, current trends show private foreign direct investments as the dominant money flow into The Bahamas, reflective of the stronger shift in ownership structure towards the private sector. Foreign investments have clearly provided a substantial boost to the competitive profile of the tourism industry, with infrastructure expansion and renovation projects. The construction industry has been significantly impacted by FDI, with almost $200 million in new investments initiated in this sector each year since 1993. And, there continue to be encouraging improvements in domestic savings — important resources for growth and development. Pension fund resources in particular have increased tremendously, with assets projected to top $1 billion by 2005 at the current rate of growth.

It is anticipated that the good “economic fundamentals” being experienced will help The Bahamas move closer to its full potential — and that the private sector will be challenged even more to respond to the universal challenge of rapid technological change and globalisation.