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Bahamas economy forecast to grow in 2008
Real estate news By Caribbean Net News
Friday, January 11, 2008
The forecast for the country as supported by the International Monetary Fund (IMF) calls for the Bahamian economy to grow by about 4 per cent at the upper level and 3.5 per cent at the lower level in 2008. Minister of State for Finance Zhivargo Laing said this estimation comes even though some of the challenges presented by the global economy in 2007, such as high oil prices and the broadening impact of the US sub-prime mortgage crisis will continue to present some downside risk for The Bahamas. “The growth will be underpinned by foreign investment projects both in the tourism and industrial areas that will come on stream, combined with a modest recovery expected in tourism output and robust public sector capital development programme.”
Laing explained that these include major road works, such as the New Providence Improvement Programme ($120 million), as well as the Lynden Pindling International Airport expansion and redevelopment ($400 million). The dominant global theme in recent times has been the precipitous rise in crude oil prices and the subsequent run-up in energy and transportation costs, which resulted in downward revisions in growth forecasts during the course of 2007 across many national economies, Laing pointed out at the Bahamas Business Outlook Seminar on Wednesday.
The seminar, now in its 17th year, draws senior government officials, businesspersons, entrepreneurs and other sectors of Bahamian society to hear local and international authorities address a wide spectrum of topics and subject matter. Laing said last October, the IMF revised its 2008 forecast for world output expansion down to 4.8 per cent from the 5.2 per cent expected in 2007 and 5.4 per cent noted in 2006.
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