Economic activity in The Bahamas decelerated to 0.9% in 2019. Growth in real gross domestic product, originally projected to strengthen, was adversely affected by the passage of Hurricane Dorian in September 2019. However, growth was sustained by increased activity in the tourism industry, with total visitor arrivals surpassing that of 2018. The destruction is expected to have resulted in a rise in the unemployment rate in 2019. Inflation ticked up slightly on a period average basis.Estimates of fiscal performance of the Government point to a deterioration in fiscal outcomes. Pre˗Dorian fiscal balances were trending in line with the recently established Fiscal Responsibility Law. However, in the aftermath of the disaster, fiscal outturns were compromised and direct charges to Government rose. Notwithstanding, external balances improved due partly to higher tourism receipts and capital inflows. The financial sector remained profitable and well capitalised, but growth in private sector credit slowed.
