The MoneyHatch Newsletter, Edition 14

April 30th, 2025

Editor’s Note: Exclusive Economic Zone

Ocean rights have been a point of international contention for centuries. As countries began staking claims beyond their borders, it was clear that the seas needed rules. That’s where the United Nations Convention on the Law of the Sea (UNCLOS) came in.

Under UNCLOS, coastal nations are granted an Exclusive Economic Zone (EEZ) extending up to 200 nautical miles from their shores. Within this zone, they hold exclusive rights to exploit natural resources like fish, oil, and minerals.

These EEZ quirks make for some interesting geopolitics.Take France, for example. Thanks to its far-flung overseas territories in the Caribbean, Indian Ocean, and Pacific, it controls the largest EEZ in the world. The United States comes second, boosted by island holdings like Guam, American Samoa, and the Northern Mariana Islands.

Ironically, even tiny island nations can control vast ocean areas. A small speck of land in the middle of the sea still grants 200 miles in every direction. That’s a lot of fish for a little island.

So the next time you look at a world map, remember: what you see on land is only part of the story. The real power might be floating just offshore.

Warm Regards,

The MoneyHatch Team

Bahamian Financial Updates

Economy News

1. Slower Growth in Q1 but Foreign Investment and Credit Remain Strong

The Bahamian economy showed signs of slower growth in Q1 2025, largely due to capacity limits in the tourism sector. Hotel shortages held back tourism earnings even as cruise arrivals remained strong. Despite this, foreign investment continues to support construction and job creation.

Inflation eased thanks to lower import and electricity costs, which helped consumer purchasing power. The banking sector also saw improvement. Loan delinquencies dropped, consumer and commercial credit expanded, and liquidity remains high.

However, mortgage growth slowed, foreign currency inflows declined, and reserves, while still solid, dipped slightly from the same period last year. Central Bank Governor John Rolle warned that global trade tensions and tariffs could create headwinds going forward but assured the public that the Central Bank is prepared to act.