UN report shows The Bahamas nearly doubling closest counterpart in investment performance during global downturn.
The Bahamas demonstrated the strongest level of Foreign Domestic Investment (FDI) receipts among Small Island Development States (SIDS) during what has been described the worst global economic downturn in nearly 100 years. The United Nations Commission on Trade and Development (UNCTAD) released its annual World Investment Report 2021 on June 21, reporting on global and regional FDI trends for the 2020 calendar year.
During the pandemic-fueled worldwide economic downturn, foreign investment inflows among SIDS contracted by 40.3% globally, and declined for the Caribbean by 36%. However, despite the challenging global economic circumstances, The Bahamas experienced a 47% increase in FDI receipts from $611 million in 2019 to $897 million in 2020.
Similarly, FDI inflows to neighbouring Barbados grew by 22% to $262 million and Grenada increased by 11% to $146 million. Neighbouring Caribbean countries, such as Jamaica and St. Kitts & Nevis experienced contractions in FDI receipts of 45% and 47% respectively.
The results of the UN report by the global investment study highlights the core message that despite the severe global economic downturn associated with the COVID-19 pandemic, investors maintained a strong level of confidence in the Bahamian economy. When compared to other Small Island Development States around the world, The Bahamas received the largest level of foreign investment, outpacing our closest competitor by some $500 million.
“This is perhaps strongest indicator of the enduring and sustained confidence that investors have in The Bahamas. It cannot be taken for granted that during these challenging times, investmentsare not only continuing but increasing. This is evidence that we are headed in the right direction, and motivates us to redouble our efforts until full recovery,” said Minister J. Kwasi Thompson, Minister of State for Finance.
“As the Bahamian economy rebounds, the Government’s articulated Accelerated Bahamas Recovery Plan has placed a renewed focus on prioritizing public and private sector investment. Under this administration, The Bahamas will continue to improve its investment framework, to ensure that domestic and foreign investment inflows willremain healthy and strong over the medium and long term resulting in more employment opportunities for Bahamians,” said Minister Thompson
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