It is however, causing some domestic controversy with the opposition parties accusing the Government of allowing the US to dictate its financial regime. The OECD for its part has dropped its demand that the Bahamas introduce income tax, to which it is implacably opposed. The construction sector has boomed as a result of the continuing growth of tourism and is a significant employer. It may now be becoming vulnerable to slowing down, however, as expansion of the tourist infrastructure levels out. The challenge for the Government will be to either to maintain activity in the sector, without increasing the Government deficit, or to find ways to channel surplus construction workers into other sectors.
Most produce is consumed domestically.
The Government is keen to expand agricultural production both to reduce food imports and to diversify its export and foreign exchange earning capacity. It has identified beef and pork production and processing, fruit and nuts, dairy production, winter vegetables and shrimp farming as areas where it would like to see foreign investment. There is a small industrial sector which produces pharmaceuticals, beer and rum and aragonite. There is also a facility for trans-shipping oil. A duty free zone and industrial development park has been established in Freeport to encourage foreign industrial development.