The Central Bank of the Bahamas (CBB) has indicated that the domestic economy continued a tempered pace of growth in July, aligning more closely with its medium-term potential, according to the bank’s Monthly Economic and Financial Developments (MEFD) report for July 2025.
Tourism activity remained healthy, though moderated, as capacity constraints affected the high-value-added stopover segment. The cruise sector, however, continued to experience robust growth and attracted significant foreign investment in onshore private destinations. Ministry of Tourism data showed total arrivals rose 10.7 per cent in June to one million visitors, driven primarily by a 13.8 per cent increase in sea arrivals, while air arrivals declined by 3.1 per cent. On a year-to-date basis, total arrivals expanded by 10.6 per cent to 6.3 million.
In the short-term vacation rental market, AirDNA reported a 3.1 per cent increase in total room nights sold to 79,615 in July. However, occupancy rates fell due to expanded inventory, with entire place listings dropping to 52.5 per cent and hotel-comparable listings to 45.6 per cent. Average daily rates rose to US$592.40 for entire place listings and US$186.92 for hotel-comparable listings.
The CBB also reported that inflation eased, with the All-Bahamas Retail Price Index showing a 0.2 per cent decrease during the 12 months to May 2025, compared to a two per cent increase in the same period in 2024.
On the fiscal front, preliminary data for the first 11 months of the 2024/25 financial year showed the government’s deficit narrowed to US$141.5 million, from US$151.1 million in the previous year, as revenue growth outpaced expenditure. Total revenue rose by US$245.5 million to US$3.1 billion, fueled by tax receipts, including a US$123.9 million increase in departure taxes and a US$70.8 million rise in VAT collections. Aggregate expenditure increased by US$235.9 million to US$3.2 billion.
Monetary developments showed a buildup in banking sector liquidity, though deposit growth lagged behind domestic credit expansion. External reserves declined due to net foreign currency outflows in the public sector and reduced private sector inflows.
The CBB concluded that while stopover tourism remained capacity constrained, overall economic indicators point to steady performance, supported by continued growth in cruise arrivals, fiscal consolidation, and moderating inflation.
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