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Overview
The Bahamas is a stable, developing nation with an economy heavily dependent on tourism and offshore banking. Steady growth in tourism receipts and a boom in construction of new hotels, resorts, and residences had led to solid GDP growth in recent years, but the slowdown in the US economy and the attacks of 11 September 2001 held back growth in these sectors in 2001-03. Financial services constitute the second-most important sector of the Bahamian economy, accounting for about 15% of GDP. However, since December 2000, when the government enacted new regulations on the financial sector, many international businesses have left The Bahamas. Manufacturing and agriculture together contribute approximately a tenth of GDP and show little growth, despite government incentives aimed at those sectors. Overall growth prospects in the short run rest heavily on the fortunes of the tourism sector, which depends on growth in the US, the source of more than 80% of the visitors. In addition to tourism and banking, the government supports the development of a "third pillar," e-commerce.
Basic Ingredients of the Bahamian Economy The Bahamian economy is almost entirely dependent on tourism and financial services to generate foreign exchange earnings. Tourism alone provides an estimated 60% of the gross domestic product (GDP) and employs about half the Bahamian work force. In 2004, over 5 million tourists visited The Bahamas, most of whom are from the United States. For GDP in neuroscience see Giant depolarizing potentials. ...
A major contribution to the recent growth in the overall Bahamian economy is Kerzner International's Atlantis Resort and Casino, which took over the former Paradise Island Resort and has provided a much needed boost to the economy. In addition, the opening of Breezes Super Club and Sandals Resort also aided this turnaround. The Bahamian Government also has adopted a proactive approach to courting foreign investors and has conducted major investment missions to the Far East, Europe, Latin America, and Canada. The primary purpose of the trips was to restore the reputation of The Bahamas in these markets. Far East is a term often used for East Asia and Southeast Asia combined, sometimes including also the easternmost territories of Russia, i. ...
World map showing location of Europe A satellite composite image of Europe Europe is geologically and geographically a peninsula, forming the westernmost part of Eurasia. ...
Latin America consists of the countries of South America and some of North America (including Central America and some the islands of the Caribbean) whose inhabitants mostly speak Romance languages, although Native American languages are also spoken. ...
Financial services constitute the second-most important sector of the Bahamian economy, accounting for up to 15% of GDP, due to the country's status as a tax haven and offshore banking center. As of December 1998, the government had licensed 418 banks and trust companies in The Bahamas. The Bahamas promulgated the International Business Companies (IBC) Act in January 1990 to enhance the country's status as a leading financial center. The act served to simplify and reduce the cost of incorporating offshore companies in The Bahamas. Within 9 years, more than 84,000 IBC-type companies had been established. In February 1991, the government also legalized the establishment of Asset Protection Trusts in The Bahamas. In December 2000, the government enacted a legislative package to better regulate the financial sector, including creation of a Financial Intelligence Unit and enforcement of "know-your-customer" rules.
Agriculture and fisheries industry together account for 5% of GDP. The Bahamas exports lobster and some fish but does not raise these items commercially. There is no largescale agriculture, and most agricultural products are consumed domestically. The Bahamas imports more than $250 million in foodstuffs per year, representing about 80% of its food consumption. The government aims to expand food production to reduce imports and generate foreign exchange. It actively seeks foreign investment aimed at increasing agricultural exports, particularly specialty food items. The government officially lists beef and pork production and processing, fruits and nuts, dairy production, winter vegetables, and mariculture (shrimp farming) as the areas in which it wishes to encourage foreign investment.
The Bahamian Government maintains the value of the Bahamian dollar on a par with the U.S. dollar. The Bahamas is a beneficiary of the U.S.-Caribbean Basin Trade Partnership Act (CBTPA), Canada's CARIBCAN program, and the European Union's Lome IV Agreement. Although the Bahamas participates in the political aspects of the Caribbean Community (CARICOM), it has not entered into joint economic initiatives with other Caribbean states. The Caribbean Basin Trade Partnership Act (CBTPA) is a United States legislative act signed into law on May 18, 2000 by President Bill Clinton as part of the Trade and Development Act of 2000. ...
The Caribbean Community and Common Market or CARICOM was established by the Treaty of Chaguaramas [1] which came into effect on August 1, 1973. ...
The Bahamas has a few notable industrial firms: the Freeport pharmaceutical firm, PFC Bahamas (formerly Syntex), which recently streamlined its production and was purchased by the Swiss pharmaceutical firm Roche; the BORCO oil facility, also in Freeport, which transships oil in the region; the Commonwealth Brewery in Nassau, which produces Heineken, Guinness, and Kalik beers; and Bacardi Corp., which distills rum in Nassau for shipment to the U.S. and European markets. Other industries include sun-dried sea salt in Great Inagua, a wet dock facility in Freeport for repair of cruise ships, and mining of aragonite--a type of limestone with several industrial uses-- from the sea floor at Ocean Cay.
The Hawksbill Creek Agreement established a duty-free zone in Freeport, The Bahamas' second-largest city, with a nearby industrial park to encourage foreign industrial investment. The Hong Kong-based firm, Hutchison Whampoa, has opened a container port in Freeport. The Bahamian Parliament approved legislation in 1993 that extended most Freeport tax and duty exemptions through 2054. Hutchison Whampoa Limited (HWL, 和記黃埔有限公司), (HKSE: 0013), of Hong Kong, is one of the largest companies listed on the Hong Kong Stock Exchange. ...
The Bahamas is largely an import, service economy. There are about 110 U.S.-affiliated businesses operating in The Bahamas, and most are associated with tourism and banking. With few domestic resources and little industry, The Bahamas imports nearly all its food and manufactured goods from the United States. American goods and services tend to be favored by Bahamians due to cultural similarities and heavy exposure to American advertising. Service economy can refer to one or both of two recent economic developments. ...
A tourist boat travels the River Seine in Paris, France Tourism can be defined as the act of travel for the purpose of recreation, and the provision of services for this act. ...
For other uses, see Bank (disambiguation). ...
Business Environment The Bahamas offers attractive features to the potential investor: a stable democratic environment, relief from personal and corporate income taxes, timely repatriation of corporate profits, proximity to the U.S. with extensive air and telecommunications links, and a good pool of skilled professional workers. The Government of The Bahamas welcomes foreign investment in tourism and banking and has declared an interest in agricultural and industrial investments to generate local employment, particularly in white-collar or skilled jobs. Despite its interest in foreign investment to diversify the economy, the Bahamian Government responds to local concerns about foreign competition and tends to protect Bahamian business and labor interests. As a result of domestic resistance to foreign investment and high labor costs, growth can stagnate in sectors which the government wishes to diversify. Telecommunication is the extension of communication over a distance. ...
Investment is a term with several closely-related meanings in finance and economics. ...
The country's infrastructure is best developed in the principal cities of Nassau and Freeport, where there are relatively good paved roads and international airports. Electricity is generally reliable, although many businesses have their own backup generators. In Nassau, there are two daily newspapers, three weeklies, and several international newspapers available for sale. There also are five radio stations. Both Nassau and Freeport have a television station. Cable TV also is available locally and provides most American programs with some Canadian and European channels.
Areas of Opportunity The best U.S. export opportunities remain in the traditional areas of foodstuffs and manufactured goods: vehicles and automobile parts; hotel, restaurant, and medical supplies; and computers and electronics. Bahamian tastes in consumer products roughly parallel those in the U.S. With approximately 85% of the population of primarily African descent, there is a large and growing market in the Bahamas for "ethnic" personal care products. Merchants in southern Florida have found it profitable to advertise in Bahamian publications. Most imports in this sector are subject to high but nondiscriminatory tariffs. A hotel is an establishment that provides lodging, usually on a short-term basis. ...
Toms Diner, a restaurant in New York familiarized by Suzanne Vega and the television sitcom Seinfeld A restaurant is an establishment that serves prepared food and beverages to be consumed on the premises. ...
See drugs, medication, and pharmacology for substances that are used to treat patients. ...
The tower of a personal computer (specifically a Power Mac G5). ...
World map showing location of Africa A satellite composite image of Africa Africa is the worlds second_largest continent in both area and population, after Asia. ...
State nickname: Everglade State, Sunshine State Other U.S. States Capital Tallahassee Largest city Jacksonville Governor Jeb Bush Official languages English Area 170,451 km² (22nd) - Land 137,374 km² - Water 30,486 km² (17. ...
Statistics "GDP"
purchasing power parity - $5.295 billion (2004 est.)
"GDP - real growth rate"
3% (2004 est.)
"GDP - per capita"
purchasing power parity - $17,700 (2004 est.)
"GDP - composition by sector"
agriculture: 3%
industry: 7%
services: 90% (2001 est.)
"Household income or consumption by percentage share"
lowest 10%: NA
highest 10%: 27% (2000)
"Inflation rate (consumer prices)"
1.2% (year ending September 2004)
"Labor force"
156,000 (1999)
"Labor force - by occupation"
agriculture 5%, industry 5%, tourism 50%, other services 40% (1999 est.) "Unemployment rate"
10.2% (2004 est.) "Budget"
revenues: $1 billion
expenditures: $1 billion, including capital expenditures of $106.7 million (FY03/04)
"Agriculture - products"
citrus, vegetables; poultry
"Industries"
tourism, banking, cement, oil transshipment, salt, rum, aragonite, pharmaceuticals, spiral-welded steel pipe
"Electricity - production"
1.716 billion kWh (2002)
"Electricity - consumption"
1.596 billion kWh (2002)
"Oil - consumption"
23,000 bbl/day (2001 est.)
"Oil - exports"
transhipments of 29,000 bbl/day (2003)
"Exports"
$636 million (2003 est.)
Exports - commodities:
mineral products and salt, animal products, rum, chemicals; fruit and vegetables
Exports - partners:
US 34.7%, Spain 10.5%, Germany 7.7%, France 7.6%, Poland 5.3%, Switzerland 4.8%, Peru 4.2%, Paraguay 4.2% (2003)
Imports:
$1.63 billion (2003)
Imports - commodities:
machinery and transport equipment, manufactures, chemicals, mineral fuels; food and live animals
Imports - partners:
US 20.8%, South Korea 17.4%, Italy 11.4%, France 9.1%, Brazil 7.5%, Japan 5.6%, Venezuela 5.3% (2003)
Debt - external:
$308.5 million (2002)
Economic aid - recipient:
$9.8 million (1995)
Currency:
Bahamian dollar (BSD)
Currency code:
BSD
Exchange rates: Bahamian dollars per US dollar - 1 (2004), 1 (2003), 1 (2002), 1 (2001), 1 (2000)
Fiscal year:
1 July - 30 June
References World Factbook 2004 cover The World Factbook is an annual publication by the Central Intelligence Agency of the United States with basic almanac-style information about the various countries of the world. ...
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