Financial reality of The Bahamas
A recent report from the International Momentary Fund telling of the state of The Bahamas noted that the implementation of the Value Added Tax (VAT) is helping the countries financial position. The report said that the economic activity in The Bahamas strengthened somewhat in 2014 while the external current account deficit worsened primarily as a result of Baha Mar construction-related import. It noted that the authorities continue to make substantial progress on fiscal consolation with successful VAT implementation in January 2015 setting the stage for continue improvements in the fiscal position. Further it said that lower oil prices helped keep inflation anchored in 2014, but said that still notwithstanding the capital flow management (CFM) regime international reserves remain low. The advice given as key policy advice was: Despite the U.S. recovery and the imminent opening of the Baha Mar resort, the growth outlook remains well below pre-global crisis leve...