BICA president highlights rising cost of living ahead of budget communication
Albury, in an emailed statement to Guardian Business about BICA’s views on the upcoming budget, said: “As the government prepares to present its fiscal plan for 2025/2026, we acknowledge the complex economic environment in which this administration must operate, balancing the country’s growth potential against global headwinds, inflationary pressures, and the persistent need to drive equitable economic outcomes.
“The Consumer Price Index (CPI) and core inflation indicators suggest that the cost of food, energy, rent, and transportation continue to weigh heavily on household budgets. The rising costs of consumer goods and services, coupled with exorbitant real estate prices – driven largely by luxury developments – appear to be making everyday life increasingly unaffordable for the average Bahamian.
“We commend the government on its vision and welcome the many foreign direct investment (FDI) projects currently underway. As a Grand Bahama native, I am excited about what is being anticipated in Freeport. However, we must also ensure that these projects do not crowd out local ownership or drive up the cost of land, housing, and essential services beyond the reach of everyday Bahamians. While the investor looks after their own interests, our government must be more assertive in ensuring that the benefits of growth are more evenly distributed.”
Albury said that as the nation shifts into the new fiscal year, the national focus should firmly be on local businesses, entrepreneurship, and innovation, adding that small and medium-sized enterprises (SMEs) are facing structural obstacles that hinder their growth, from burdensome regulatory hurdles, to the continued difficulty in opening basic bank accounts and securing business licenses efficiently.
“In a country where 95 percent of businesses are SMEs, the ease of doing business must improve dramatically. It should not take months to become operational, nor should compliance processes be so opaque or costly that they discourage formalization,” he said.
“We believe there is more value in investing from the center outwards, focusing on the middle class, working population, and local entrepreneurs. This approach has a higher multiplier effect, stimulating broader consumption, job creation, and household stability. International studies consistently show that income growth through this route translates more reliably into national prosperity than wealth concentrated at the top and the anticipated ‘trickle down’.
“To be clear, we support the government’s broader economic strategy, and we appreciate the complexities of managing an evolving $18 billion economy. We support the move to be more deliberate, bold, and targeted to ensure that economic growth translates into tangible benefits for more Bahamian households.
Albury said BICA stands ready to partner with policymakers, as it has done in the past, providing insights, supporting financial literacy, and advocating for best practices.
“Just as I recently encouraged our SMEs to be bold, intentional, and to strive for greatness, we also urge our government to embrace the same spirit. In doing so, we collectively move toward building an economy that is not only growing, but one that is more resilient, inclusive, and truly Bahamian.”
Albury noted that direct and indirect impacts from strong tourism arrivals, in both the cruise and stopover segments, are the primary contributors to the national growth figures. Yet, when analyzed more deeply, this growth does not seem to have translated into broad-based prosperity.
“Many citizens feel disconnected from the reported economic improvements, and we are concerned that real purchasing power has remained stagnant. In some instances, where revenues may have risen nominally for businesses, input costs have risen proportionately, leaving net margins unchanged and living standards unmoved.”