The Central Bank of the Bahamas reported that economic growth remained healthy in the first half of 2026 and is forecast to finish the year only moderately below the 3.8% estimated for 2025. Stronger stopover tourism, robust cruise arrivals and foreign investment supported construction and employment, while private credit growth firmed and banking-sector lending risks declined. Inflation increased as geopolitical pressures raised fuel costs and prices for other imports. Commercial banks’ foreign currency purchases from the private sector rose 17.8% to $4.6 billion, while sales increased 13.7% to $4.1 billion. External reserves consequently grew by $480 million during the first half, compared with $355 million a year earlier, and stood near $3.20 billion in late July. The nonperforming loan ratio fell by about 1 percentage point from June 2025 to an estimated 4.4%. The central bank expects reserves to end 2026 at stable or potentially improved levels, supporting the Bahamian dollar’s fixed exchange rate and providing capacity for stronger private-sector credit and greater government reliance on local currency financing. It will balance support for lending with safeguards for reserves and financial stability as wars, tariff uncertainty, inflation and prolonged high international interest rates continue to weigh on the outlook.
Central Bank of the Bahamas2026-07-30
Central Bank of the Bahamas reports sustained first-half growth and $3.20 billion in reserves despite external headwinds
The Central Bank of the Bahamas reported healthy first-half growth, with full-year expansion expected to be only moderately below the 3.8% estimated for 2025. External reserves reached about $3.20 billion in late July, while the nonperforming loan ratio declined to an estimated 4.4%. Higher import prices, geopolitical conflicts and tariff uncertainty remain key risks.