Economy

The Economy of the Bahamas

The Bahamian economy is based primarily on tourism, which is concentrated mainly in Nassau and Grand Bahama. According to the Economist Intelligence Unit, tourism and construction are largely responsible for a real GDP growth of about 4 percent annually since 1996. Another important economic sector is financial services, which places the Bahamas among the world’s leading financial centers. After the impact from Hurricane Floyd, this sector was back to full strength in less than three working days and made a tremendous contribution to disaster relief efforts, both individually and through financial organizations.

Tourism alone accounts for more than 60% of GDP and directly or indirectly employs almost half of the archipelago’s labor force. Steady growth in tourism receipts and a boom in construction of new hotels, resorts, and residences have led to solid GDP growth in recent years. 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 the majority of tourist visitors.

The Economy of the Bahamas: By the Numbers