Bahamas Central Bank Governor Comments On Economic Situation

by Amanda Banks, Tax-News.com, London

24 May 2002

Speaking at a Bahamas Chamber of Commerce lunch earlier this week, the Governor of the Central Bank of the Bahamas, Julian Francis expressed cautious optimism for the future of the jurisdiction's economy, although he warned against relying too much on a recovery in the United States.

The Nassau Guardian quoted Mr Francis as observing that the economy 'continues to mark time' and that 'while the tourism performance has, under the circumstances, not been bad, we do not appear to be presently experiencing the broad, strong continuous strength in tourism which would translate into positive growth for our economy.'

However, he stressed that despite the discontinuation of IBC incorporation and the closure of several banks in the jurisdiction, the financial services sector performed well last year, with the increased compliance needed to meet with international anti-money laundering standards meaning that employment within the finance industry actually increased in 2001.

Mr Francis praised the Bahamas government's decision to focus on the provision of financial services as a priority for the economic future of the jurisdiction, and predicted that: 'I don't see any reason why in five years from now, we shouldn't be looking at a Bahamas which has really redefined its position in the global environment.'

'I do want to say that I have a great deal of confidence in the future of the economy of the Bahamas generally,' he told Chamber of Commerce members

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