Bahamas 

Bahamas country policy

Policy established 02 February 2009

• No Restrictions
• The country ceiling is 500 mln euro
• Early warning signal 125 mln euro
• - of which was used as at 2011-08-31 93 mln euro

Country class: 3

Bahamas country facts

ATRADIUS Dutch State Business Economic Research
Country Report last updated :  13 May 2011
Country :  BAHAMAS

Political Situation

Stable

Head of state
QEII, represented by a governor.

Form of government
Government of the Free National Movement (FNM), headed by p.m. Hubert Ingraham. 
 
Internal Economic Situation
Good

General situation
The Bahamian economy has prospered through tourism, tourism-related sectors (services, construction) and offshore international banking. The business environment is enhanced by absence of direct and indirect taxes. Sustained GDP-growth is only held back by external factors like the global (US) recession in 2009 and hurricanes. Agriculture and manufacturing are less developed sectors. Structurally low level of inflation and interest rates. 
 
External Economic Situation
Despite Large Current Account Deficits, REASONABLY GOOD
Main sources of foreign exchange
Tourism, shipping, offshore finance.

Main foreign markets
USA (71%), EU (14%).

Main expenses of foreign exchange
Consumer goods, construction materials, oil.

Balance of payments 
The (very) large current account deficits are being financed by foreign private investments in tourism, shipping and banking sectors and other capital imports. B$ pegged to the US$ since 1973.