MITCHELL RESPONDS TO STANDARD AND POORS

This story originally appeared in The Tribune 8 October 2024

By KEILE CAMPBELL

Tribune Staff Reporter

kcambell@tribunemedia.net

AFTER Standard & Poor’s (S&P) gave The Bahamas a B+ rating with a stable outlook, Foreign Affairs Minister Fred Mitchell urged the private sector to step up in defending the country’s economic resilience.

He stressed their “considerable influence” over international perceptions, remarking that “a fisherman never calls his own fish stink,” referencing the role

of local business leaders in shaping how agencies view the economy.

Prime Minister Philip Davis also acknowledged the rating last week but highlighted the need to continue addressing structural reforms, recognising the “lot of work ahead”. S&P’s report projected slower GDP growth at 1.8 percent for 2024, pointing to long-standing issues like fiscal headroom and vulnerability to external shocks, which threaten the nation’s future stability.

Last week, Mr Halkitis expressed confidence that “we will exceed their growth estimates,” challenging the agency’s pessimism. He reiterated that, while sceptical in the past, “we don’t buy that at all”, referring to previous S&P forecasts that underestimated the government’s ability to raise revenue and grow the economy.

Mr Mitchell echoed similar sentiments, saying: “They were wrong before, and I believe they’ll be wrong again.”