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2023:What Does It Mean For The Bahamas and Caribbean?
Jan 20, 2023 by Godfrey W. Eneas
External economic shocks have been the Achilles' heel of Caribbean economies which are dependent on the state of the global economy. As a locale with limited natural resources ( bauxite in Jamaica and Guyana and oil in Trinidad and Tobago with very recent finds in Guyana), the region has been unable to insulate its economies against these external shocks.
Several in the 21 st century have had a devastating impact like 9/11in 2001, the Global Meltdown in 2008, hurricanes like Dorian in 2019 in The Bahamas, and the Ukraine War in 2022 set off a wave of global inflation. With supply chain disruption caused by Covid-19, many Caribbean economies were paralyzed because of their heavy dependence on tourism, and visitor arrivals on some islands needed to be more present. Tourism for some economies represents 40 % or more of their GNP. In The Bahamas, tourism arrivals were 4.1 million; by 2020, there was a shortfall of 3 million( a 75.73% decline) as arrivals dipped to a meagre 1.0 million.
According to an Inter-American Development (IDP) report, this year is expected to bring high food and fuel prices as well as rising interest rates. In a food deficit region where the food import bill is about $5 billion dollars annually and for large segments of Caribbean societies food is unaffordable for millions. Food imports are fueled by demand from the Tourism Sector. In The Bahamas, table eggs are the cheapest source of protein; however, an egg costs almost $1 each.
In The Bahamas, the main source of energy is fossil fuels and this has accounted for high electricity rates. The dependency on fossil fuels increases room rates because of air conditioning, and taxi fares in conjunction with the high costs of food have a negative influence on the competitiveness of the region.
In a region which is a food deficit one and struggling with food and nutrition issues, non-communicable diseases have reached epidemic proportions because for millions nutritional foods are unaffordable. Caribbean people eat too many processed foods with high sugar content.
The Caribbean became a food-deficient region during the second half of the 20th century when many economies were transformed from agriculture-based economies to services driven by tourism. Tourism has taken millions out of poverty and has lifted the quality of life in many states.
This unbalanced growth has exposed the vulnerabilities of the region of External Economic Shocks are one.
Several in the 21 st century have had a devastating impact like 9/11in 2001, the Global Meltdown in 2008, hurricanes like Dorian in 2019 in The Bahamas, and the Ukraine War in 2022 set off a wave of global inflation. With supply chain disruption caused by Covid-19, many Caribbean economies were paralyzed because of their heavy dependence on tourism, and visitor arrivals on some islands needed to be more present. Tourism for some economies represents 40 % or more of their GNP. In The Bahamas, tourism arrivals were 4.1 million; by 2020, there was a shortfall of 3 million( a 75.73% decline) as arrivals dipped to a meagre 1.0 million.
According to an Inter-American Development (IDP) report, this year is expected to bring high food and fuel prices as well as rising interest rates. In a food deficit region where the food import bill is about $5 billion dollars annually and for large segments of Caribbean societies food is unaffordable for millions. Food imports are fueled by demand from the Tourism Sector. In The Bahamas, table eggs are the cheapest source of protein; however, an egg costs almost $1 each.
In The Bahamas, the main source of energy is fossil fuels and this has accounted for high electricity rates. The dependency on fossil fuels increases room rates because of air conditioning, and taxi fares in conjunction with the high costs of food have a negative influence on the competitiveness of the region.
In a region which is a food deficit one and struggling with food and nutrition issues, non-communicable diseases have reached epidemic proportions because for millions nutritional foods are unaffordable. Caribbean people eat too many processed foods with high sugar content.
The Caribbean became a food-deficient region during the second half of the 20th century when many economies were transformed from agriculture-based economies to services driven by tourism. Tourism has taken millions out of poverty and has lifted the quality of life in many states.
This unbalanced growth has exposed the vulnerabilities of the region of External Economic Shocks are one.