Bahamas

The Bahamian economy contracted by 1.7% in 2008, as against growth of 0.7% in 2007. The downturn in major markets, especially in the second half of the year, led to a slump in demand for tourism services and a sharp fall in foreign direct investment (FDI) that dampened construction activity. Real value added in financial services was buoyant in 2008. Reflecting the impact of higher fuel and food prices, inflation leaped far above trend to 4.6%, compared with 2.8% in 2007. One of the knock-on effects of the rapid decline in activity levels in the second semester was a spike in unemployment, which reached 12.1% at the end of December, a far higher rate than the 7.9% recorded in December 2008.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure

Peace, Justice and Strong Institutions