Editing Economy of the Bahamas

{{Short description|None}}
{{More citations needed|date=May 2025}}
{{Infobox economy
| country = the Bahamas
| image = Nassau - panoramio (2).jpg
| image_size = 300px
| caption = [[Nassau, Bahamas|Nassau]] is the capital and financial center of [[the Bahamas]].
| currency = [[Bahamian dollar]] (BSD)
| year = 1 July - 30 June
| organs = [[World Trade Organization|WTO]], [[Caribbean Community|CARICOM]]
| gdp = {{plainlist|
* {{increase}} $15.18 billion ([[GDP (nominal)|nominal]]; {{abbr|2025|2025 forecast}})<ref name="IMF DataMapper">{{cite web |url=https://www.imf.org/external/datamapper/profile/BHS |title=IMF DataMapper: The Bahamas |website=[[International Monetary Fund]] |date=2025 |access-date=31 May 2025}}</ref>
* {{increase}} $16.02 billion ([[Purchasing power parity|PPP]]; {{abbr|2025|2025}})<ref name="IMF DataMapper"/> 
}}
| gdp rank = {{plainlist|
* [[List of countries by GDP (nominal)|142th (nominal; 2025)]]
* [[List of countries by GDP (PPP)|155th (PPP; 2025)]]
}}
| growth = {{plainlist|   
* {{Increase}} 2.6%&nbsp;(2023)<ref name="IMF DataMapper" />
* {{Increase}} 2.0%&nbsp;(2024)<ref name="IMF DataMapper" />
* {{Increase}} 1.8%&nbsp;({{abbr|2025|2025 forecast}})<ref name="IMF DataMapper" />
* {{Increase}} 1.7%&nbsp;({{abbr|2026f|2025 forecast}})<ref name="IMF DataMapper" />
}}
| per capita = {{plainlist|
* {{increase}} $36,780 (nominal; {{abbr|2025|2025 forecast}})<ref name="IMF DataMapper"/>
* {{increase}} $38,830 (PPP; {{abbr|2025|2025 forecast}})<ref name="IMF DataMapper"/> 
}}
| per capita rank = {{plainlist|
* [[List of countries by GDP per capita (nominal)|28th (nominal; 2025)]]
* [[List of countries by GDP per capita (PPP)|56th (PPP; 2025)]]
}}
| sectors = agriculture: 2.1%, industry: 7.1%, services: 90.8% (2012 est.)
| inflation = 2.230% (2018)<ref name="IMFWEOBS">{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/02/weodata/weorept.aspx?pr.x=49&pr.y=10&sy=2016&ey=2021&scsm=1&ssd=1&sort=country&ds=.&br=1&c=313&s=NGDP_RPCH%2CNGDPD%2CPPPGDP%2CNGDPDPC%2CPPPPC%2CPCPIPCH&grp=0&a= |title=World Economic Outlook Database, October 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=21 October 2019}}</ref>
| poverty = 9.3% (2004)
| hdi = {{plainlist|
*{{increase}} 0.805 {{color|green|very high}} (2018)<ref>{{cite web |url=http://hdr.undp.org/en/indicators/137506 |title=Human Development Index (HDI) |publisher=[[Human Development Report|HDRO (Human Development Report Office)]] [[United Nations Development Programme]] |website=hdr.undp.org |access-date=11 December 2019}}</ref> ([[List of countries by Human Development Index|60th]])
*N/A [[List of countries by inequality-adjusted HDI|IHDI]] (2018)<ref>{{cite web |url=http://hdr.undp.org/en/content/table-3-inequality-adjusted-human-development-index-ihdi |title=Inequality-adjusted Human Development Index (IHDI) |publisher=[[Human Development Report|HDRO (Human Development Report Office)]] [[United Nations Development Programme]] |website=hdr.undp.org |access-date=11 December 2019}}</ref>}}
| labor = 184,000 (2009)
| occupations = agriculture 5%, industry 5%, tourism 50%, other services 40% (2005 est.)
| unemployment = 14.2% (2009 est.)
| edbr = {{decrease}} [[Ease of doing business index#Ranking|119th (medium, 2020)]]<ref name="World Bank and International Financial Corporation">{{cite web |url=http://www.doingbusiness.org/data/exploreeconomies/bahamas |title=Ease of Doing Business in Bahamas, The |publisher=Doingbusiness.org |access-date=2017-01-23 }}</ref>
| industries = [[tourism]], [[banking]], [[cement]], [[petroleum|oil]] [[transshipment]], [[salt]], [[rum]], [[aragonite]], [[pharmaceuticals]], spiral-welded steel pipe
| exports = $1.316 billion (2017 est.)<ref>{{Cite web|url=http://www.bahamastradeinfo.gov.bs/trade-information/global-trade-statistics/|title = Global trade statistics}}</ref>
| export-goods = mineral products and salt, animal products, rum, chemicals, fruit and vegetables
| export-partners = {{plainlist|
*{{flag|United States}} 35.5%
*{{flag|Zimbabwe}} 15.6%
*{{flag|Cote d'Ivoire}} 13.9% 
*{{flag|Germany}} 8.09% 
*{{flag|Guyana}} 7.84%
*{{flag|Poland}} 6.32% (2023)<ref name="OECExport">{{cite web |title=Export Partners of the Bahamas |url=https://oec.world/en/visualize/tree_map/hs92/export/bhs/show/all/2023 |publisher=[[The Observatory of Economic Complexity]] |access-date=24 March 2025}}</ref>}}
| imports = $9.097 billion (2017 est.)
| import-goods = machinery and transport equipment, manufactures, chemicals, mineral fuels; food and live animals
| import-partners = {{plainlist|
*{{flag|United States}} 60.4%
*{{flag|Germany}} 12.7% (2023)<ref name="OECImport">{{cite web|title=Import Partners of the Bahamas |url=https://oec.world/en/visualize/tree_map/hs92/import/bhs/show/all/2023 |publisher=[[The Observatory of Economic Complexity]] |access-date=24 April 2025}}</ref>}}
| debt = $342.6 million (2004 est.)
| revenue = $1.5 billion (2012)
| expenses = $1.8 billion (2012)
| credit = BBB+ (Domestic)<br />BBB+ (Foreign)<br />A- (T&C Assessment)<br />([[Standard & Poor's]])<ref>{{cite web |title= Sovereigns rating list |publisher=Standard & Poor's |url=http://www.standardandpoors.com/ratings/sovereigns/ratings-list/en/eu/?subSectorCode=39 |access-date=26 May 2011}}</ref>
| aid = ''recipient'': $5 million (2004)
| cianame = bahamas-the
}}
The '''economy of the Bahamas''' is dependent upon [[tourism]] and [[offshore bank]]ing. [[The Bahamas]] is the richest country in the [[West Indies]].{{citation needed|date=March 2025}} It is a stable, developing nation in the [[Lucayan Archipelago]], with a population of 391,232 (2016). 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. The slowdown in the [[Economy of the United States]] and the [[September 11 attacks]] held back growth in these sectors from 2001 to 2003. 

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 10% of GDP and show little growth, despite government incentives for those sectors. Overall growth prospects in the short run rest heavily on the fortunes of the tourism sector, which depends on growth in the United States, 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.

==Features of the Bahamian economy==
The Bahamian economy is almost entirely dependent on tourism and financial services to generate foreign exchange earnings. The Gross Domestic Product (GDP) of the Bahamas is approximately $5.7 billion with tourism accounting for 50%, financial services nearly 20% and the balance spread among retail and wholesale trade, fishing, light manufacturing and agriculture.<ref>{{Cite web|url=https://www.bahamas.gov.bs/wps/portal/public/About%20Us/About%20The%20Bahamas/Economic%20Environment/!ut/p/b1/vZDJkqJAEIafxQfopthKPCIoAsVeIHAhQDZZlJFNfPqxZ-Ywl7YvM515yowv84v4iZDwifAST-ciHs7XS9x8zCGMaMnQLIHhNA4yGyCTWJfFnUlLh_UTCD4AIGk8_wQMCn8AAglVlwWqQ351fyR8PQB3kZHnvYwjoZ4O3ZUr3Doo4u2inWc4t1KaXIVwo3giG-Fw10XTiLoTnrLCK3GjXVt9nkIqq-K0UEVhdu3TUmcdumdiP1BV6jfuFM0XJYhonGNFqWwNVnvpZh6ai5ciJyzzqGVKRjf067C_DA4asHedRoNfQlLZ3tu4PR3mbofqXjR3XImwVexV18E3eEP3mtSWYPUnB_BJ8eDrHMLfyIskfwGvFK8_0ETwBNafAhYkMOEDJnKqpZMf9cOuHjZyHgbliLuZvLkzrhJPx3sT6w7ZP1dAdEld5AF-7GVdFGisJ2bq2e6W56FWAv-10GHX3ytUre8WQuq_C1WKfgoRjXROIB0Ev1vI_nOhQoTnpH2fT-07eCcpFrCQ42gKAJqC9JrwqgDek17hRTnMlWA4BP2mdyxXFlKncWSpOfVqaSwNbTbUqUTsBgO-LguYRv1bFGaTuO03Rz2G28IIWdTQtwUwHNBpOrAE1YlZ3iOT44U680bR_ChG1PB-vt-OFTPm9FtmhjxqT6rSGJsbs6W00bdNMvRUqB07SioRNartmVw_Brc173gaWxkrXV6nAYo4dtANYN_cMtbqDq8vkpmMC7sEVVQoCYobq6fnY3w_GpXOd2OEkJCLgzvl_hivrdWK0A_XNiO61p0QtA8P_6_O-NVP4B5luQ!!/dl4/d5/L2dBISEvZ0FBIS9nQSEh/|title=Economic Environment|website=bahamas.gov.bs|language=en|access-date=2021-11-26}}</ref> The European Union lists the Bahamas as one of several Caribbean "uncooperative jurisdictions" because it fails to meet tax fairness and transparency benchmarks.<ref name="icijbahamas">{{cite news|title=Bahamas, US Virgin Islands And St. Kitts And Nevis Added To EU Blacklist|url=https://www.icij.org/investigations/paradise-papers/bahamas-us-virgin-islands-st-kitts-nevis-added-eu-blacklist/|agency=INTERNATIONAL CONSORTIUM OF INVESTIGATIVE JOURNALISTS|publisher=icij.org}}</ref>

===Tourism===
{{Main|Tourism in the Bahamas}}
Tourism alone provides an estimated 51% 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]].<ref>{{cite web|url=http://www.tourismtoday.com/services/statistics/foreign-air-sea|title=Total Arrivals (Air & Sea Landed & Cruise)|publisher=Tourism Today Network|year=2016|access-date=2017-06-01}}</ref>

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.

===Offshore financial services===
{{Unreferenced section|date=November 2019}}

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, 418 banks and trust companies have been licensed 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 simplified and reduced the cost of incorporating offshore companies in the Bahamas. Within 9 years, more than 100,000 [[International Business Company|IBC]]-type companies had been established. In February 1991, the government also legalized the establishment of [[Asset-protection trust|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|know-your-customer]]" rules. Other initiatives include the enactment of the Foundations Act in 2004 and the planned introduction of legislation to regulate [[Trust company|Private Trust Companies]]. After being later off the blacklist,<ref>{{Cite web|title=Jurisdictions under Increased Monitoring – 23 October 2020|url=http://www.fatf-gafi.org/countries/d-i/iceland/documents/increased-monitoring-october-2020.html|access-date=2021-02-18|website=www.fatf-gafi.org|language=en}}</ref> in December 2020 Bahamas also was taken off<ref>{{Cite web|title=FATF removes The Bahamas from the list of Jurisdictions under Increased Monitoring|url=http://www.fatf-gafi.org/publications/high-risk-and-other-monitored-jurisdictions/documents/bahamas-delisting-2020.html|access-date=2021-02-18|website=www.fatf-gafi.org|language=en}}</ref> the FATF greylist.

===Agriculture===
{{See also|Agriculture in the Bahamas}}
{{See also|Bahamian cuisine}}
{{Unreferenced section|date=November 2019}}

[[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 large scale 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.

=== Trade ===
{{Unreferenced section|date=November 2019}}

The Bahamian Government maintains the value of the [[Bahamian dollar]] on a par with the [[United States dollar|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.

===Industry===
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, Bahamas|Nassau]], which produces [[Heineken Pilsener|Heineken]], [[Guinness]], and [[Kalik]] beers;<ref>[http://www.burnshouse.com Commonwealth Breweries / Burnshouse website]</ref> and [[Bacardi|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 [[Freeport Container Port|container port in Freeport]]. The Bahamian Parliament approved legislation in 1993 that extended most Freeport tax and duty exemptions through 2054.

==Taxation==
{{Further|Taxation in the Bahamas}}

The Bahamas has 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.<ref>{{cite web|title=Contributions Table|url=http://www.nib-bahamas.com/_m1722/Brochures/default.aspx|publisher=The National Insurance Board of The Commonwealth of The Bahamas|access-date=2011-12-22|date=2010-05-11}}</ref> In 2010, overall tax revenue was 17.2% of GDP.<ref>{{cite web|title=Bahamas, The|url=https://www.cia.gov/the-world-factbook/countries/bahamas-the/|work=[[The World Factbook]]|publisher=[[Central Intelligence Agency]]|access-date=2011-12-22}}</ref> A [[value-added tax]] (VAT) of 7.5% has been levied 1 January 2015. It then increased from 7.5% to 12% effective from 1 July 2018.<ref>{{Cite web|url=https://inlandrevenue.finance.gov.bs/value-added-tax/about-vat/|title=About – VAT – Department of Inland Revenue}}</ref>

==Statistics==
The following table shows the main economic indicators in 1980–2017.<ref>{{cite web|title=Report for Selected Countries and Subjects|url=https://www.imf.org/external/pubs/ft/weo/2018/01/weodata/weorept.aspx?sy=1980&ey=2023&scsm=1&ssd=1&sort=country&ds=.&br=1&c=313&s=NGDP_RPCH,PPPGDP,PPPPC,PCPIPCH,LUR,GGXWDG_NGDP&grp=0&a=&pr.x=83&pr.y=8|access-date=2018-09-25|language=en-US}}</ref>
{| class="wikitable" style="text-align:center; vertical-align:middle;"
|- style="font-weight:bold;"
! Year
! GDP<br />(in bil. US$ PPP)
! GDP per capita<br />(in US$ PPP)
!GDP
(in bil. US$ nominal)
! GDP growth<br />(real)
! Inflation<br />(in Percent)
! Unemployment rate<br />(in Percent)
! Government debt<br />(Percentage of GDP)
|-
| style="font-weight:bold;" | 1980
| 2.51
| 11,877
|2.60
| 7.1 %
| 12.2 %
| ...
| ...
|-
| style="font-weight:bold;" | 1985
| 3.81
| 16,296
|3.92
| 4.1 %
| 4.6 %
| ...
| ...
|-
| style="font-weight:bold;" | 1990
| 4.99
| 19,575
|5.22
| 1.1 %
| 4.6 %
| 12.0 %
| 13 %
|-
| style="font-weight:bold;" | 1995
| 5.61
| 20,103
|5.65
| 4.4 %
| 2.0 %
| 10.9 %
| 21, %
|-
| style="font-weight:bold;" | 2000
| 7.79
| 25,722
|8.08
| 5.0 %
| 1.7 %
| 7.0 %
| 19 %
|-
| style="font-weight:bold;" | 2005
| 9.50
| 29,231
|9.84
| 3.4 %
| 1.8 %
| 10.2 %
| 23 %
|-
| style="font-weight:bold;" | 2006
| 10.03
| 30,512
|10.17
| 2.5 %
| 2.0 %
| 7.6 %
| 23 %
|-
| style="font-weight:bold;" | 2007
| 10.45
| 31,398
|10.62
| 1.4 %
| 2.4 %
| 7.9 %
| 23 %
|-
| style="font-weight:bold;" | 2008
| 10.41
| 30,906
|10.53
| −2.3 %
| 4.4 %
| 8.7 %
| 25 %
|-
| style="font-weight:bold;" | 2009
| 10.05
| 29,501
|9.98
| −4.2 %
| 1.7 %
| 14.2 %
| 30 %
|-
| style="font-weight:bold;" | 2010
| 10.33
| 29,986
|10.10
| 1.5 %
| 1.6 %
| 15.1 %
| 34 %
|-
| style="font-weight:bold;" | 2011
| 10.61
| 30,452
|10.07
| 0.6 %
| 3.1 %
| 15.9 %
| 35 %
|-
| style="font-weight:bold;" | 2012
| 11.14
| 31,618
|10.72
| 3.1 %
| 1.9 %
| 14.4 %
| 38 %
|-
| style="font-weight:bold;" | 2013
| 11.25
| 31,593
|10.40
| −0.6 %
| 0.4 %
| 15.8 %
| 44 %
|-
| style="font-weight:bold;" | 2014
| 11.31
| 31,410
|11.00
| −1.2 %
| 1.2 %
| 14.6 %
| 48 %
|-
| style="font-weight:bold;" | 2015
| 11.09
| 30,435
|11.67
| −3.1 %
| 1.9 %
| 13.4 %
| 51 %
|-
| style="font-weight:bold;" | 2016
| 11.25
| 30,534
|11.75
| 0.2 %
| −0.3 %
| 12.2 %
| 53 %
|-
| style="font-weight:bold;" | 2017
| 11.60
| 31,139
|12.25
| 1.3 %
| 1.4 %
| 10.1 %
| 57 %
|}
* 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—{{convert|26830|oilbbl/d|abbr=on}} (2006 est.) - Rank 115
* Oil - exports—transhipments of {{convert|29000|oilbbl/d|abbr=on}} (2003)
* Exchange rate—[[Bahamian dollar]] is pegged to the [[United States dollar|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,{{When|date=March 2019}} government spending was 23.4% of GDP.

== 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)]]

==References==
{{reflist}}
* ''Some of the material in this article comes from the [[The World Factbook|CIA World Factbook]] 2009.''

== External links ==
* [http://statistics.bahamas.gov.bs/key.php?cmd=view&id=164 Bahamian Government Statistics] {{Webarchive|url=https://web.archive.org/web/20131113142800/http://statistics.bahamas.gov.bs/key.php?cmd=view&id=164 |date=2013-11-13 }}

{{Americas topic|Economy of}}
{{Bahamas topics|state=uncollapsed}}
{{Caribbean in topic|Economy of}}
{{Caricom}}
{{World Trade Organization}}

{{DEFAULTSORT:Economy of the Bahamas}}
[[Category:Economy of the Bahamas| ]]