Abstract

Economic growth in the Bahamas is gradually declining. With the onset of climate change, the country runs the danger of falling into a vicious circle whereby falling government revenues result in slower rates of economic growth, leading to a further reduction in revenues. Increased budgetary pressures result in lower allocations for climate abatement measures that, in turn, expose the country to more climate-related damage, which further reduces growth and government revenues. The situation is not hopeless, but the government must make a concerted effort to prepare for what lies ahead, or the country will experience a long-run decline.