The Bahamas economy is in stable state and is developing with time. The Bahamas economy is mainly depended on tourism industry and offshore banking. Tourism accounts for more than 60 percent of GDP of Bahamas economy.
Financial services constitute a major aspect in the economy of Bahamas. There has been a steady growth in tourism sector of Bahamas, which led to a drastic improvement in the GDP growth of economy. The boom in tourism sector led to the construction of new hotels, resorts, and residences which were increased source of income in Bahamas economy. However after the September 11th attacks, there has been a slowdown in the GDP growth of the Bahamas economy.
Financial services are regarded as the second most significant sector in the economy of Bahamas. The financial sector accounts up to 15 percent of GDP growth. But since, December 2000 due to new regulations imposed by the government on the financial sector many international businesses have left the economy. Manufacturing and agriculture sectors are not that dominant in the Bahamas economy. Together these sectors accounts up to a tenth of GDP. There has been a slow growth in these two sectors.
The pharmaceutical company produces small quantity of products that are mainly used for export purpose and for the oil company. There are several brewing industries that produce several types of beers. These sectors also earn a substantial amount of foreign wealth by export trade. Construction was in peak state in the year 1998, there is an increase demand of construction in the country and this sector is doing well.
Vital statistics of Bahamas economy
GDP (PPP) $6.098 billion (2005 est.) GDP growth 3.5% (2005 est.) GDP per capita $20,200 (2005 est.) GDP in agriculture sector 3% GDP in industry: 7% GDP in services 90% (2001 est.) Inflation rate (CPI) 1.2% ( 2004)
The Bahamian government advocates foreign investment. For this purpose the government has taken significant steps like liberal incentives and rationalized administrative procedures. International Business Companies Act of 1990 was imposed to minimize the expenditure of setting up foreign companies. The efforts of government of Bahamas have led to establishment of a steady economy.