Economy of the Bahamas - wikipedia Economy of the Bahamas Economy of Bahamas Currency Bahamian dollar ( BSD ) Fiscal year 1 July - 30 June Trade organisations WTO, CARICOM Statistics GDP $11.04 billion ( 2012 est. PPP ) GDP rank 140th ( nominal ) / 153rd ( PPP ) GDP growth 2.5 % ( 2012 est. ) GDP per capita $31,300 ( 2012 est. ) GDP by sector agriculture : 2.1 %, industry : 7.1 %, services : 90.8 % ( 2012 est. ) Inflation ( CPI ) 2.5 % ( 2012 ) Population below poverty line 9.3 % ( 2004 ) Labour force 184,000 ( 2009 ) Labour force by occupation agriculture 5 %, industry 5 %, tourism 50 %, other services 40 % ( 2005 est. ) Unemployment 14.2 % ( 2009 est. ) Main industries tourism, banking, cement, oil transshipment, salt, rum, aragonite, pharmaceuticals, spiral - welded steel pipe Ease - of - doing - business rank 121st ( 2017 ) External Exports $790 million ( 2012 est. ) Export goods mineral products and salt, animal products, rum, chemicals, fruit and vegetables Main export partners United States 24.1 % Singapore 18.1 % Colombia 13.4 % Panama 9.8 % Taiwan 5.7 % Malaysia 4.8 % ( 2013 est. ) Imports $2.882 billion ( 2012 est. ) Import goods machinery and transport equipment, manufactures, chemicals, mineral fuels ; food and live animals Main import partners United States 29.9 % Mexico 20.1 % Singapore 8.7 % South Korea 6.7 % China 5.0 % Venezuela 4.3 % Canada 4.2 % ( 2013 est. ) Public finances Public debt $342.6 million ( 2004 est. ) Revenues $1.5 billion ( 2012 ) Expenses $1.8 billion ( 2012 ) Economic aid recipient : $5 million ( 2004 ) Credit rating BBB+ ( Domestic ) BBB+ ( Foreign ) A - ( T&C Assessment ) ( Standard & Poor 's ) Main data source : CIA World Fact Book All values, unless otherwise stated, are in US dollars. 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 for many years, but the slowdown in the US economy and the attacks of September 11, 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 `` 2nd - pillar '', e-commerce. Contents 1 Basic Ingredients of the Bahamian Economy 2 Taxation 3 Areas of opportunity 4 Statistics 5 References 6 See also 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 45 % of the gross domestic product ( GDP ) and employs about half the Bahamian workforce. In 2016, over 3 million tourists visited The Bahamas, most of whom are from the United States and Canada. 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. Financial services constitute the second-most important sector of the Bahamian economy, accounting for up to 17 % of GDP, due to the country 's status as an offshore financial 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, partly as a response to appearing the plenary FATF Blacklist, 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. Other initiatives include the enactment of the Foundations Act in 2004 and the planned introduction of legislation to regulate Private Trust Companies. See also : Agriculture in the Bahamas See also : Bahamian cuisine 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 Bahamas has a few notable industrial firms : the Freeport pharmaceutical firm, PharmaChem Technologies ( GrandBahama ) Ltd. ( formerly Syntex ) ; 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. Other smaller but more nimble players in the banking industry include Fidelity Bank ( Bahamas ) Ltd. ( FBB ) and Royal Fidelity Merchant Bank & Trust Limited ( RFMBT ). FBB offers a wide range of innovative banking products including loan products with built - in savings plans. RFMBT is the only merchant bank in The Bahamas and is a joint venture with Royal Bank of Canada. It provides investment products and services and attracts the majority of the corporate business deals in The Bahamas, most recently acting as financial advisor and placement agent for the largest Initial Public Offering ( IPO ) ever in The Bahamas with the IPO of Commonwealth Brewery, a Heineken subsidiary. 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. 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. 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 eight 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. Taxation The Bahamas have no income tax, corporate tax, capital gains tax, or wealth tax. Payroll taxes fund social insurance benefits and amount to 3.9 % paid by the employee and 5.9 % paid by the employer. In 2010, overall tax revenue as a percentage of GDP was 17.2 %. A value - added tax ( VAT - 7.5 % ) was instituted effective 1 January 2015. 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 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. Statistics `` Household income or consumption by percentage share '' highest 10 % : 27 % ( 2000 ) `` Agriculture - products '' citrus, vegetables ; poultry `` Electricity - production '' 2,505 GWh ( 2007 est. ) - Rank 133 `` Electricity - consumption '' 1,793 GWh ( 2007 ) - Rank 133 `` Oil - consumption '' 26,830 bbl / d ( 4,266 m / d ) ( 2006 est. ) - Rank 115 `` Oil - exports '' transhipments of 29,000 bbl / d ( 4,600 m / d ) ( 2003 ) `` Exchange rates '' Bahamian dollars per US dollar - The Bahamian dollar is pegged to the U.S. dollar on a one - to - one basis The Bahamas has the 47th freest economy in the world according to The Heritage Foundation 2010 Index of Economic Freedom. The Bahamas is ranked 7th out of 29 countries in the South and Central America / Caribbean region, and its overall score is higher than the regional and world averages. Total government spending, including consumption and transfer payments, is relatively low. In the most recent year, government spending equaled 23.4 percent of GDP. References Jump up ^ `` Ease of Doing Business in Bahamas, The ''. Doingbusiness.org. Retrieved 2017 - 01 - 23. Jump up ^ `` Export Partners of the Bahamas ''. CIA World Factbook. 2012. Retrieved 2013 - 07 - 26. Jump up ^ `` Import Partners of the Bahamas ''. CIA World Factbook. 2012. Retrieved 2013 - 07 - 26. Jump up ^ `` Sovereigns rating list ''. Standard & Poor 's. Retrieved 26 May 2011. Jump up ^ `` Total Arrivals ( Air & Sea Landed & Cruise ) ''. Tourism Today Network. 2016. Retrieved 2017 - 06 - 01. Jump up ^ Commonwealth Breweries / Burnshouse website Jump up ^ `` Contributions Table ''. The National Insurance Board of The Commonwealth of The Bahamas. 2010 - 05 - 11. Retrieved 2011 - 12 - 22. Jump up ^ `` Bahamas, The ''. The World Factbook. Central Intelligence Agency. Retrieved 2011 - 12 - 22. Some of the material in this article comes from the CIA World Factbook 2009. Bahama Government Statistics See also List of Commonwealth of Nations countries by GDP List of Latin American and Caribbean countries by GDP growth List of Latin American and Caribbean countries by GDP ( nominal ) List of Latin American and Caribbean countries by GDP ( PPP ) The Bahamas articles History Battle of Nassau Colonial heads Eleutheran Adventurers American Civil War Raid on Charles Town Raid on Nassau Battle of Nassau ( 1720 ) Capture of the Bahamas ( 1782 ) Capture of the Bahamas ( 1783 ) Geography Cities Nassau Freeport Islands New Providence Grand Bahama Rivers Wildlife birds mammals Politics Defence Force Elections Foreign relations Governor - General Law Judiciary Supreme Court Chief Justice Enforcement Capital punishment Local government Monarchy Parliament Political parties Prime Minister Security and intelligence Economy Agriculture Communications Dollar ( currency ) Stock exchange Transport Society Demographics Ethnic groups Education Languages Religion LGBT rights in the Bahamas Culture Coat of Arms Creole Flag Films Music Television Anthem National Song Pledge Outline Index Bibliography Book Portal Caribbean Community ( CARICOM ) Secretariat ( Secretary - General ) Members Antigua and Barbuda Bahamas Barbados Belize Dominica Grenada Guyana Haiti Jamaica Montserrat St. Kitts and Nevis St. Lucia St. Vincent and the Grenadines Suriname Trinidad and Tobago Associate members Anguilla Bermuda British Virgin Islands Cayman Islands Turks and Caicos Islands Observers Aruba Colombia Curaçao Dominican Republic Mexico Puerto Rico Sint Maarten Venezuela Institutions Common Fund for Commodities ( CFC ) Court of Justice ( CCJ ) Disaster Emergency Management ( CDEMA ) Examinations Council ( CXC ) Meteorological Institute ( CMI ) Meteorological Organisation ( CMO ) Public Health Agency ( CARPHA ) Single Market and Economy ( CSME ) Related organizations CARIFORUM Organisation of Eastern Caribbean States ( OECS ) Member of the Community but not of the CARICOM Single Market and Economy ( CSME ) British overseas territory awaiting entrustment to join the CSME Economy of the Caribbean Greater Antilles Cayman Islands Cuba Dominican Republic Haiti Jamaica Puerto Rico Leeward Antilles Aruba Bonaire Curaçao Federal Dependencies of Venezuela Leeward Islands Anguilla Antigua and Barbuda British Virgin Islands Guadeloupe Montserrat Saba Saint Barthélemy Saint Martin U.S. Virgin Islands Saint Kitts and Nevis Sint Eustatius Sint Maarten Windward Islands Dominica Grenada Martinique Saint Lucia Saint Vincent and the Grenadines Other islands Barbados Bahamas Trinidad and Tobago Turks and Caicos Islands Continental coasts Belize Bermuda Colombia Costa Rica French Guiana Guatemala Guyana Honduras Mexico Nicaragua Panama Suriname Venezuela Economy of the Americas North America South America Sovereign states Antigua and Barbuda Argentina Bahamas Barbados Belize Bolivia Brazil Canada Chile Colombia Costa Rica Cuba Dominica Dominican Republic Ecuador El Salvador Grenada Guatemala Guyana Haiti Honduras Jamaica Mexico Nicaragua Panama Paraguay Peru Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Suriname Trinidad and Tobago United States Uruguay Venezuela Dependencies and other territories Anguilla Aruba Bermuda Bonaire British Virgin Islands Cayman Islands Curaçao Falkland Islands French Guiana Greenland Guadeloupe Martinique Montserrat Puerto Rico Saint Barthélemy Saint Martin Saint Pierre and Miquelon Saba Sint Eustatius Sint Maarten South Georgia and the South Sandwich Islands Turks and Caicos Islands US Virgin Islands World Trade Organization System Accession and membership Appellate Body Dispute Settlement Body International Trade Centre Chronology of key events Issues Criticism Doha Development Round Singapore issues Quota Elimination Peace Clause Agreements General Agreement on Tariffs and Trade Agriculture Sanitary and Phytosanitary Measures Technical Barriers to Trade Trade Related Investment Measures Trade in Services Trade - Related Aspects of Intellectual Property Rights Government Procurement Information Technology Marrakech Agreement Doha Declaration Bali Package Ministerial Conferences 1st ( 1996 ) 2nd ( 1998 ) 3rd ( 1999 ) 4th ( 2001 ) 5th ( 2003 ) 6th ( 2005 ) 7th ( 2009 ) 8th ( 2011 ) 9th ( 2013 ) 10th ( 2015 ) People Roberto Azevêdo ( Director - General ) Pascal Lamy ( former Director - General ) Supachai Panitchpakdi ( former Director - General ) Deputy Directors - General : Yonov Frederick Agah Karl Brauner David Shark Yi Xiaozhun former : Alejandro Jara Valentine Rugwabiza Harsha Singh Rufus Yerxa Members Afghanistan Albania Algeria Angola Antigua and Barbuda Argentina Armenia Australia Bahrain Bangladesh Barbados Belize Benin Bolivia Botswana Brazil Brunei Burkina Faso Burma Burundi Cambodia Cameroon Canada Cape Verde Central African Republic Chad Chile China Colombia Democratic Republic of the Congo Republic of the Congo Costa Rica Côte d'Ivoire Cuba Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador European Union 1 Fiji Gabon The Gambia Georgia Ghana Grenada Guatemala Guinea Guinea - Bissau Guyana Haiti Honduras Hong Kong 2 Iceland India Indonesia Israel Jamaica Japan Jordan Kazakhstan Kenya South Korea Kuwait Kyrgyzstan Laos Lesotho Liberia Liechtenstein Macau 2 Macedonia Madagascar Malawi Malaysia Maldives Mali Mauritania Mauritius Mexico Moldova Mongolia Montenegro Morocco Mozambique Namibia Nepal New Zealand Nicaragua Niger Nigeria Norway Oman Pakistan Panama Papua New Guinea Paraguay Peru Philippines Qatar Russia Rwanda St. Kitts and Nevis St. Lucia St. Vincent and the Grenadines Samoa Saudi Arabia Senegal Seychelles Sierra Leone Singapore Solomon Islands South Africa Sri Lanka Suriname Swaziland Switzerland Tajikistan Taiwan 3 Tanzania Thailand Togo Tonga Trinidad and Tobago Tunisia Turkey Uganda Ukraine United Arab Emirates United States Uruguay Venezuela Vietnam Yemen Zambia Zimbabwe 1. All twenty - eight member states of the European Union are also members of the WTO in their own right : Austria Belgium Bulgaria Croatia Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden United Kingdom 2. Special administrative regions of the People 's Republic of China, participates as `` Hong Kong, China '' and `` Macao China ''. 3. Officially the Republic of China, participates as `` Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu '', and `` Chinese Taipei '' in short. Retrieved from `` https://en.wikipedia.org/w/index.php?title=Economy_of_the_Bahamas&oldid=791676462 '' Categories : Economy of the Bahamas Talk Contents About Wikipedia Languages Asturianu বাংলা Català Español Galego Ido ქართული Occitan Português Русский Edit links This page was last edited on 21 July 2017, at 19 : 49. 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Question: what are the main industries driving the economy of the bahamas
Answer: tourism