The Quarterly Overview of Domestic Economic Developments ending September said this figure was approximately $153.9 million above the September 2002 level.
The report says that preliminary indicators suggest that the Bahamian economy weakened during the third quarter over the corresponding period in 2002.
“This outturn was primarily due, in combination, to a decrease in tourism expenditures, owing to the delayed recovery in leisure spending among households in the United States, the primary market, and the softness in the construction sector, where financing for both domestic projects slackened,” the report says.
But the outlook for both the tourism and construction sectors are favourable heading into the new year, due primarily to firming employment trends and anticipated improvements in the U.S. economy.
In addition, the anticipated start of significant foreign investment projects in the hotel sector should boost construction output in 2004, according to the report. Government officials have said that the $600 million expansion of Kerzner International’s Atlantis Paradise Island Resort is expected to drive this boost.
Commenting on the report last night, Minister of State for Finance James Smith said moving forward, the government will continue to focus on curtailing expenditure and clogging revenue collection leakages.
“The deficit is still of prime concern to us,” Minister Smith said in an interview with the Journal.
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“We will continue to keep our eye on expenditure while at the same time trying to improve the revenue collection effort and if necessary review the options we have available to us on the revenue side.”
He also commented on the favourable economic forecast contained in the report.
But Minister Smith also reiterated his message of cautious optimism.
“I think there has been some improvement,” he said, “but we also run the risk of slippages and we want to avoid that.”
The report also said that the estimated deficit for the first quarter of fiscal year 2003/2004 narrowed to $23.1 million from $28.1 million in the year-earlier period.
Revenue collection, meanwhile, increased by 4.1 percent o $213.7 million, supported by the 3.8 percent gain in tax collections and higher non-tax yield which were linked to fee increases approved in the budget.
By Candia Dames, The Bahama Journal
