Survey Shows September 11 Attacks Still Affecting Bahamian Economy

by Amanda Banks, Tax-News.com, London

09 August 2002

A survey conducted by the Bahamian Coalition of Private Sector Organisations has revealed that some 85% of businesses based in the low tax jurisdiction feel that the events of September 11 and the subsequent economic downturn in the United States are still affecting the Bahamian economy.

The survey, which was conducted in June by the Coalition, also showed that 91% of employers believe that recent changes to the financial services sector have impacted negatively on the country's economy, and will continue to do so over the coming year.

The Coalition of Private Sector Organisations is an umbrella group which represents the needs and opinions of The Bahamas Chamber of Commerce, the Bahamas Hotel Employers' Association, The Bahamas Employers Confederation, Nassau Tourism and Development Board, and the Bahamas Manufacturers' Agents and Wholesalers Association.

The Nassau Guardian reported on Wednesday that the private sector body described the results of the survey as 'very sobering', and announced that although the Bahamian economy is showing some signs of rebounding, it remains 'highly vulnerable'.

'Business confidence is not high with most in a restraint mode with regard to capital spending, a clear indicator of future economic activity. Based upon submitted comments, a 'wait and see' attitude appears to be prevalent in most businesses,' the Coalition explained.

This contradicts the viewpoint expressed by the US Ambassador to the Bahamas, Richard Blankenship, who observed recently that the economic downturn in the United States had not had a hugely detrimental effect on the Bahamian economy, despite the close links between the two countries in terms of tourism and imports.

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