Economic Survey Shows Rise In Bahamian Business Optimism

by Amanda Banks, Tax-News.com, London

08 September 2003

The Bahamas Semi Annual Economic Outlook survey has revealed a more upbeat assessment of the future by the nation's businesses, despite most firms reporting losses or a generally lacklustre performance, the Nassau Gaurdian reports

According to the report, carried out by the Coalition of Private Sector Organisations, an umbrella group representing the Chamber of Commerce, the employer's confederation and various tourism organisations, more than 40% of firms recorded losses last year, and 36% anticipate further financial difficulties in the remainder of 2003. Nevertheless, the survey still found "cautious confidence" amongst many firms.

The statistics would appear to support this, and whilst half of those polled considered the Bahamian economy weak or very weak, this was an improvement on the 64% who thought the same in the last survey. Similarly, only 1% of respondents had a positive outlook six months ago, whereas almost 20% of firms now share this view. Though 43% retained a negative outlook, this was almost 10% lower than the previous poll.

Meanwhile, one third of businesses laid off staff in the first six months of the year and more than 50% of firms recorded a drop in sales. Furthermore, nearly one quarter said they are expecting to reduce their workforce in the coming months. Though over 40% anticipated lower sales in the last half of 2003, 36% were expecting sales to pick up, a significant improvement on recent studies.

When asked to asses the implications of the FTAA (Free Trade of the Americas) agreement which is in an advanced state of negotiation, three quarters of firms claimed they had a basic understanding of how it will impact their businesses.

The cost of dealing with and preventing crime including shoplifting and employee theft was cited as the biggest drain on costs by the nation's businesses. Firms also complained that the difficulty in obtaining work permits for more specialised forms of labour was a hindrance to business and 45% considering this a major or extreme problem.

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