The Bahamas

The Bahamas has been in the midst of a solid economic recovery, supported by buoyant tourism. This has created space to strengthen public finances, improve the institutional framework for fiscal policymaking, and invest in disaster risk management. Inflation has declined, supported by the peg with the U.S. dollar. An ambitious electricity sector reform is underway but Hurricane Melissa is a vivid reminder that the country remains vulnerable to unpredictable natural disasters.