The Central Bank of the Bahamas (CBB) has reported that the domestic economy experienced moderated growth through August 2025, aligning closer to its medium-term potential. While tourism output slowed due to constraints in the high-value stopover segment, the cruise sector remained resilient, buoyed by robust earnings and foreign investments in onshore private destinations. However, the unemployment rate rose in the first quarter of 2025, driven by a decrease in employed individuals and an increase in labor force participation. Monetary trends for August were marked by a contraction in banking sector liquidity, as domestic credit growth outpaced deposits, and external reserves declined due to net foreign currency outflows. Tourism sector earnings also slowed compared to 2024, primarily due to accommodation capacity constraints in the stopover segment. Official data revealed a 3.3% decline in total arrivals for July 2025, with sea passengers decreasing by 3.8% and air traffic by 0.9%. The short-term vacation rental market saw a 1% increase in room nights sold, but occupancy rates declined. The average daily room rate (ADR) for entire place listings rose by 11.8%, while hotel comparable listings saw a 1.1% increase. Labor market conditions worsened in the first quarter of 2025, with the unemployment rate climbing to 10.8% and youth unemployment reaching 20.9%. External reserves decreased to $74.7 million in August, with the central bank’s net foreign currency outflow to the public sector widening. The CBB forecasts slower economic growth in 2025, driven by tourism sector performance, ongoing foreign investments, and global trade uncertainties.