DOMESTIC POLITICS: Although it has been suggested that Mr Ingraham--who is nearing retirement age--may step down during the current parliamentary term, we consider this unlikely. The government's relations with public-sector unions will remain sensitive and this situation may be exacerbated by the pending privatisation of the state-owned Bahamas Telecommunications Company. Ultimately, the government's success will depend on its ability to spur domestic economic growth in the wake of the global recession. The leader of the opposition Progressive Liberal Party (PLP), Perry Christie, is expected to retain his leadership in the short term, but may opt to step down later in the parliamentary term. Should he step down, Mr Christie will face the challenge of avoiding a damaging leadership contest within the party as there is currently no clear candidate for the succession and divisions are sharp. The PLP's position, weakened by its leadership crisis and a recent extortion scandal, could give the FNM freer rein in crafting more pragmatic, rather than populist, economic policy.

Source: Bahamas: Country outlook