LatinNews Daily - 28 November 2023

* The International Monetary Fund (IMF) has released a new report on The Bahamas following the conclusion of an Article IV visit to the country which highlights that its economy “continued to rebound vigorously in 2022”. According to the IMF report, real GDP growth reached 14.4% and unemployment fell to 8.8% with “a broad-based expansion that was especially strong for tourism”. However, the IMF notes that labour force participation, particularly among men, remained at levels registered prior to the coronavirus (Covid-19) pandemic which struck in 2020. It notes that in 2023, international flight and cruise arrivals rose well above their pre-pandemic levels, leading to a projected 4.3% expansion in the year, which it says brings “the economy back to estimates of potential output”. As regards inflation, the IMF states that this has fallen steadily to 2.3% in July 2023 after peaking at 7.1% in July 2022. It says that the fall is largely driven by the drop in global energy prices. In terms of possible factors that could weigh negatively on the growth outlook, the IMF cites a fall in tourism demand, due to an economic slowdown in source markets. It also warns that “renewed pressures on global food and oil prices could impose a burden on lower income households and put pressure on the balance of payments”.