The Bahamas Prime Minister Perry Christie, of the ruling Progressive Liberal Party (PLP) is lucky to own the legislative majority that will approve its reforms. PM Christie believes that the substantial fiscal deficit will slowly decline as tourism and trade flows pick up. Tax reforms are also expected to enhance revenue although the introduction of value-added tax may not meet the July 1st target date implementation. The upsurge of investments will increase tourism capacity and facilitate recovery mode.
The Bahamas cannot be considered an under-developed country. It may be undergoing a process of development but it is economically and politically stable nation with per capita income of more than $7, 500 which is higher than many of its neighbors. The literacy rate is just about 85% of the entire population. Tourism is the leading industry generating nearly 50 percent of the total GDP. The banking and finance sector is another tower of strength in the Bahamas and accounts for roughly 15 percent of the GDP. Most of the banks and trusts are engaged in the management of assets for the wealthy. The third pillar is the construction industry which contributed significantly to the Bahamian economy during the last few years.
Agriculture, fishing and industry play a rather minor role in the economy. Although the main export articles are agriculture and fishing products like crawfish, other seafood, fruits and vegetables, rum, and crude salt are primary products. There is an industrial zone in Freeport, Grand Bahamas which includes manufacturing of chemicals, ship repair, limestone processing and oil-related industries.
Population. Ranked 178th in 2013.
GDP per capita. Ranked 33th in 2012.
10,010 sq km
Sq. km. Ranked 155th in 2008.