Bahamas Central Bank Governor, Julian Francis, expressed optimism over the jurisdiction’s economy despite a global economic slowdown and the twin threats of war and terrorism.
In an interview on local talk show ‘Focal Point’, the Governor said he was “quite positive” regarding the economy’s outlook, and placed most faith in the the traditionally strong financial sector, according to the Nassau Guardian. “I would say that more than ever, the country’s financial services broadly, would represent a very strong second industry to our economy and we need to consider very carefully, how we will meet the demands which are going to be necessary if we are going to rise to that opportunity,” he announced.
However, speaking on the impending conflict in Iraq, and the ever present spectre of terrorism curtailing international economic growth, Francis did sound a note of caution saying that the country faces “fairly difficult developments”, not least the impact this will have on the jurisdiction’s tourist industry.
Once again however, Francis focused on the financial sector as the key in promoting stability in difficult times ahead. “That has always been a good choice for us,” he revealed, adding: “We have enabled that to develop over the years. I believe that we are better at it today than we ever have been in terms of the resources which we have, largely, thanks to the College of The Bahamas and The Institute of Bankers, and those institutions which have been delivering services, and the focus which the Government is giving to the industry.”
Nevertheless, Francis urged Bahamians to adopt a more prudent approach to their spending habits, saying that the American-style consumerism of high spending on luxury goods could be potentially harmful for the economy. “We have bought almost entirely the American consumption model and we don’t understand that that is not healthy for our society, our economy and future of The Bahamas. We must be able to persuade our people to postpone consumption, the lavish spending,” he said.
Francis stressed that focus should be on higher productivity rather than profligate consumer spending if the country is to remain a strong and dynamic economy. “We have to focus more on the need to work, the need to prepare ourselves well, the need to be able to develop highly skilled services to grab a bigger part of the market in which we are competing,” The Central Bank Governor said.
By Amanda Banks, Tax-News.com
