I read somewhere that the cost of living in the Bahamas rises 4% every year. Where does that percentage comes from???

I read somewhere that the cost of living in the Bahamas rises 4% every year. Where does that percentage comes from???


The prices of goods and services increase. What drives those prices up are inflation, and the fiscal, monetary, and trade policies.

In other countries this would prompt the encouragement for the increase of local production in what a cirtain country can produce, but alas, argriculture is unpopular and carries a stigma.

One of the most obvious causes of the increasing cost of living in the Bahamas, is the need to import all most every consumer item, from outside the country.

A further economic factor are the hidden taxes on those imported items. Bahamians like to point to the "no income tax " as a good thing, while paying thru the nose for everyday needs, like food and manufactured goods.

If a country has no manufacturing industry, (The Bahamas cannot make much of anything currently ) to make things domestically, the imported materials will continue to rise in cost, due to a inability to make competatively priced goods in the local economy. Transportation costs are also a factor, as everything has to come in by ship, and even when it arrives in New Providence, it may need to to be on-shipped to another location, adding further costs to the eventual retail price of the item.

Someone mentioned agriculture...........What would it cost to buy a large enough plot of land to grow profitable crops on ? Has anyone priced "vacant land " lately, in any part of the Bahamas? Add to that cost the money that it would take to imporove the land, and the cost of equipment to raise crops? And what kind of crops will grow in the poor soil that exists on most of the islands? I think that Bahamians are going to be eating Florida produce for the foreseeable future.

Jim Bunting. Toronto.

The ministry of agriculture shouldn't have to buy land. Money should not only be invested in crops but also poultry and fish-farming. The Bahamian diet is almost entirely comprised of Bahamian food, which we should the advantage in producing. Bahamians should not be importing seafood, poultry, or vegetables.

Hotels and resorts should not be importing food to feed their guests. All should be purchased from Bahamians producers first and from outsiders if bahamian production falls short. The government would lose income but Bahamians would have more money improving their standard of living which wouldn't require so much government spending.

From what I can see is that the major issue is government spending on projects that add no value to the economy, so we end up in more debt having to borrow money to cover not only expenses but the costs of borrowing to cover those expenses.

The ministry of agriculture shouldn't have to buy land. Money should not only be invested in crops but also poultry and fish-farming. The Bahamian diet is almost entirely comprised of Bahamian food, which we should the advantage in producing. Bahamians should not be importing seafood, poultry, or vegetables.
Hotels and resorts should not be importing food to feed their guests. All should be purchased from Bahamians producers first and from outsiders if bahamian production falls short. The government would lose income but Bahamians would have more money improving their standard of living which wouldn't require so much government spending.
From what I can see is that the major issue is government spending on projects that add no value to the economy, so we end up in more debt having to borrow money to cover not only expenses but the costs of borrowing to cover those expenses.






Wow. That's unfortunate for us, wish we had more visionaries as leaders around here.

What drives the cost of living in the Bahamas???

one answer. GREED. I was stunned at an article a few weeks ago that said that grociers are basically chargin what ever they please and robbin bahamians blind simple becuase they can.

I agree with you. But I don't think that's a good example. I think grocers in the Bahamas raise prices to cover the cost of holding too much inventory - I'm certain that the groceries aren't flying off the shelf. Especially when Bahamians have the alternative of going across the ocean. Obviously that goes against the basic laws of supply and demand - the problem is we live in the real world and economic theory only helps you so far. The fact is, you have to raise prices to cover your fixed costs whenever demand drops - even though it works against you. Eventually you shut down and go out of business.

....or, government steps in and either quits charging tariffs on imports or they limit the tariffs. Or the government can act as the distributor to the grocery stores and charge them higher taxes on certain goods that require special shipping - since the the demand is probably inelastic so a 10 percent tax on caviar won't change the demand for it.

I agree with you. But I don't think that's a good example. I think grocers in the Bahamas raise prices to cover the cost of holding too much inventory - I'm certain that the groceries aren't flying off the shelf. Especially when Bahamians have the alternative of going across the ocean. Obviously that goes against the basic laws of supply and demand - the problem is we live in the real world and economic theory only helps you so far. The fact is, you have to raise prices to cover your fixed costs whenever demand drops - even though it works against you. Eventually you shut down and go out of business.
....or, government steps in and either quits charging tariffs on imports or they limit the tariffs. Or the government can act as the distributor to the grocery stores and charge them higher taxes on certain goods that require special shipping - since the the demand is probably inelastic so a 10 percent tax on caviar won't change the demand for it.



Seems like we're between a rock and steel on this issue. So, what do we have to do to reduce the cost of living? What options do we have?

most people arent going across the ocean for groceries though ...
the big stores do have more overhead than the smaller stores, but they sell alot more, so that cost should even out. Yet the small guy is still selling his stuff for much less, while they typically buy from the same place, and the large store buys in volume with larger discounts.

I agree with you. But I don't think that's a good example. I think grocers in the Bahamas raise prices to cover the cost of holding too much inventory - I'm certain that the groceries aren't flying off the shelf. Especially when Bahamians have the alternative of going across the ocean. Obviously that goes against the basic laws of supply and demand - the problem is we live in the real world and economic theory only helps you so far. The fact is, you have to raise prices to cover your fixed costs whenever demand drops - even though it works against you. Eventually you shut down and go out of business.
....or, government steps in and either quits charging tariffs on imports or they limit the tariffs. Or the government can act as the distributor to the grocery stores and charge them higher taxes on certain goods that require special shipping - since the the demand is probably inelastic so a 10 percent tax on caviar won't change the demand for it.


i actually agree with you somewhat. i was thinking about this factor the other day.

my mom doesnt buy milk she buys silk which cost about 6.00 in the bahamas. if u go to the food store u would see the shelves stocked out with silk.

now ask your self: how many bahamians go and pick up silk for 6 bucks when they could get more milk for less money? what happens to all that silk that goes spoiled? how does the store cover the cost of all that spoilage? there are alot of other items that have the same scenario (the expensive ceral, expensive deli meat, the fruit etc)

n e way i believe that the grocers in nassau do not give a flip about bringing prices down, they have a take it or leave it policy

Actually there was an agricultural component of the economy. There was a large citrus farm, but then a citrus chancre moved in and the trees had to be destroyed. I think that this was in Abaco.

And we had Gladstone Farms. The owner was killed in a car accident in Nassau and they limped along without him. But they went bankrupt, because they couldn't compete price-wise with mass-produced American chickens. At one point a politician was caught importing vast quantities of chicken wings and chicken pieces without paying duty, and it was a lucrative business for him.

And then we had the cascarilla collecting for Campari. However, the Italians decided to mitigate their risk (in case of hurricanes) and spread the production around the world, so that if one part opens up, another shuts down. Plus harvesting the stuff is hard work and considered menial labour.

Pineapple production takes a real hit ever time there is a hurricane.

Commonwealth countries like New Zealand and Canada artificially keep some agricultural commodity prices high, by dumping excess production in the Bahamas. We have no anti-dumping laws, and the cheap goods are desirable, but what it does is destroys any possibility of a domestic dairy industry.

The Symonettes run a successful indoor hydroponic food production plant. They have four acres under glass, and produce high quality vegetables, but the hotels snap it up and none is left for local consumption.

And Godfrey Eneas has a farm, but his prices are higher than the foodstores.

The outlook isn't bright for domestic food production.

Lurker:

It sounds to me like their are too many stupid people around. If you have a store and there are 200 customers but you can only service 20 customers at present operations the only alternative is to expand operations. Expanding your services to the average Bahamian consumer rather than simply hotels means more money in your pocket.

Actually, me and a group of friends had looked into Gladstone with a university in the US that may want to conduct research therefore subsidize a portion of the cost - but, black people are lazy is all I can say.

Rory:

No, the average bahamian doesn't go to miami to buy the same groceries they do when they go to their corner grocery store. But, many grocers share costs among various goods. For instance they may be prohibited from charging a huge mark-up on canned milk but they can charge a huge mark-up on cooking oil. I know my mother and many of her friends fly to florida and spend 300 dollars every 3 months at Costco buying meat, cooking oil, cereal, canned goods - you name it. The fact is that grocery store owners in the bahamas are losing a large part of their overall mark-up/gross margin because bahamians are buy bulk items overseas. Even if they buy the small items at the grocery store its still not enough...not even close..

but, black people are lazy is all I can say.

why black people gotta be lazy? why you just cant say Bahamians are lazy, or the Bahamians you spoke to were lazy or simply couldnt see your vision...need I remind you the hydroponic farm owners are white Bahamian.


Lurker you sound like a clear-speaking commodities analyst or agricultural economist.

why black people gotta be lazy? why you just cant say Bahamians are lazy, or the Bahamians you spoke to were lazy or simply couldnt see your vision...need I remind you the hydroponic farm owners are white Bahamian.


The people I speak of weren't/aren't Bahamian.