• Tourism expected to drive economic growth
• Inflation and global risks remain concerns

The Central Bank of The Bahamas says the country’s domestic economy is expected to expand at a steady pace in 2026, with key economic indicators moving closer to their medium-term growth potential.

Tourism, one of the main drivers of the economy, is expected to remain strong. The Central Bank said growth should be supported by improved performance in high-value stopover tourism and continued gains in the cruise sector. New and ongoing investment projects are also expected to support construction activity and employment.

However, inflationary pressures and higher fuel and import costs remain concerns. The Central Bank also warned that geopolitical tensions and uncertainty surrounding global tariff policies could affect the economy.

The outlook for tourism could be affected by weaker demand from the United States due to ongoing international conflicts and higher energy prices. These factors could increase travel costs, contribute to inflation and potentially delay improvements in government financing costs.

Tourism activity showed signs of strengthening in July compared with the same period in 2025. Data from Nassau Airport Development Company showed that total departures increased by 7.1 per cent to 180,831.

Non-US international departures rose by 24.3 per cent to 23,362, while US departures increased by five per cent to 157,469. For the year so far, total outbound traffic was up 5.4 per cent to about 1.1 million.

The short-term rental sector also recorded growth. AirDNA data showed that room nights sold increased by 10.5 per cent to 63,399 in July. Average daily rates also increased for both hotel-comparable and entire-place listings.

Meanwhile, The Bahamas’ external reserves fell by US$67.7 million in July to US$3.23 billion. The Central Bank said reserves are still expected to remain well above international benchmarks and provide sufficient support for the Bahamian dollar’s currency peg.

The Central Bank said it will maintain an accommodative policy toward private sector credit while continuing to monitor the foreign exchange market and take measures to support financial stability and external reserves.