The Bahamas is an archipelagic country located in the Caribbean, with a total of over 700 islands and cays. The economy of The Bahamas is largely dependent on tourism, which accounts for around 60 percent of its GDP. Other major sectors include financial services, agriculture, fisheries and manufacturing.
According to cheeroutdoor, tourism has long been a major driver of economic activity in The Bahamas. With its crystal clear waters, white sand beaches, and stunning coral reefs, it has become one of the most popular destinations in the Caribbean for both leisure and business travelers alike. Tourism is responsible for creating thousands of jobs in the hospitality industry as well as related services such as transportation and retail. In addition to tourism dollars earned from visitors, The Bahamas also benefits from cruise ships that dock at its numerous ports throughout its many islands.
Financial services are another important sector in The Bahamas’ economy. It serves as an offshore financial center for international businesses and individuals looking to benefit from the country’s favorable tax rates and banking regulations. This sector has grown significantly since the 1990s with many banks setting up operations in Nassau or Freeport on Grand Bahama Island.
Agriculture is also an important part of The Bahamas’ economy with crops such as tomatoes, potatoes, onions and other vegetables being grown on a large scale throughout many parts of the country. Fisheries are also important with species such as grouper, snapper and lobster being harvested throughout much of its waters each year.
Manufacturing makes up a small portion of GDP but still contributes significantly to overall economic activity within The Bahamas; however this sector has been declining since 2000 due to increased competition from cheaper imports from other countries around the world.
Overall, The Bahamas’ economy continues to be heavily reliant on tourism which accounts for around 60 percent of GDP; however other sectors such as financial services, agriculture and fisheries are also making significant contributions towards overall economic development within this beautiful Caribbean nation which is helping create jobs while at same time increasing living standards throughout much parts of this archipelago state.
Business
Abbreviated as BAH by abbreviationfinder.org, the Bahamas has one of the Caribbean’s strongest economies. Prosperity is based mainly on tourism and finance. The beauty of the islands and the pleasant climate attracts about 1.6 million tourists annually. The lack of direct taxes and liberal monetary policy has led many banks and companies to establish themselves in the country, which has become the region’s leading tax haven and an international financial center. The service sector accounts for about 90 percent of GDP.
The conditions for agriculture are relatively poor, and the agricultural industries are of only marginal importance. About 80 percent of the country’s food needs are covered by imports. The fish and lobster-rich waters around the islands and the increased cultivation of shrimp have made fishing increasingly important and now constitute a large part of exports. Banking and finance account for 13 percent of employment, which is twice as much as fishing and agriculture combined. The state initiatives to encourage industrial development, based primarily on fishery and agricultural products, have so far had little success. There is some industry, other manufacturing of souvenirs, pharmaceuticals, cement, spirits, salt and wood products as well as oil refining. These products, together with seafood, form the basis of exports, which amounts to only about 1/3 of imports.
Tourism and gastronomy
The Bahamas is the Caribbean’s premier tourist country. The islands are visited annually by about 1.6 million tourists, most of whom come from the United States, but some also from Canada and the United Kingdom. The tourism industry normally accounts for about 60 percent of GDP. Only 40 percent are overnight tourists, which, however, economically means more than the majority of cruise passengers. A pleasant climate and good opportunities for swimming, diving, water sports, fishing and golf. attracts the tourists. Many of the islands also offer memories of their historical past (including extensive piracy). The main tourist destination is the island of New Providence with the capital Nassau. Paradise Island has been expanded with major tourist facilities. The island of Grand Bahama, which is substantially closer to the US coast (less than 100 km) has been quickly exploited with the help of American capital.
- COUNTRYAAH: Find major trading partners of Bahamas, including major exports and major imports with latest trade value and market share as well as growth rate.
From a gastronomic point of view, the Bahamas is a melting pot, in which ingredients have been added as the cultures change. The Arua Indians, who were first on the island, have contributed manioc and chili peppers, which they brought with them from South America. African slaves introduced okra and jams, and once the Europeans were scattered throughout the Caribbean, the various national European kitchens came to contribute to the highly varied cuisine that is characteristic. The rich harvests from the sea also make their mark; Crawfish, sea urchins and sea bass are everyday foods.
Note: the capital city of Bahamas is Nassau with a population of 274 400 (refers to the entire island of New Providence, estimate 2016). Other major cities include Freeport with a population of 27,000 (estimate 2016).
HISTORY
The elections of August 1992 sanctioned the victory of the conservative Free National Movement (FNM) against the Progressive Liberal Party (PLP), continuously in power since 1967. The reasons for the defeat of the PLP, the historic Liberal Party which under the leadership of L. Pindling had opposed the hegemony of the white elite in the 1960s and led in 1973the country to independence within the Commonwealth, were of an economic and political order at the same time. On the one hand, at the end of the 1980s the Bahamas had entered a recession following the contraction of tourism of US origin, which had caused a serious crisis in the hotel sector and increased unemployment. On the other hand, numerous representatives of the liberal governments and of the Parliament had been involved in financial scandals and in corruption affairs that had seriously undermined their credibility in front of the electorate. Furthermore, drug trafficking from Colombia to the United States intensified between the 1970s and 1990s, often with the connivance of the political class and local banks. The drug trade had caused a sharp increase in crime especially among the numerous Haitian and Cuban immigrants. The new government, led by the leader of the FNM, H. Ingraham (former member of the PLP), has set itself as its objectives the fight against crime and corruption, particularly in the public administration sector, and the recovery of the economy through spending cuts. public and foreign investment incentives in the tourism, transport and telecommunications sectors. This policy garnered the consensus of the electorate and the FNM was confirmed in power after the landslide victory obtained in the legislative elections in March it set as its objectives the fight against crime and corruption, particularly in the public administration sector, and the recovery of the economy through cuts in public spending and incentives for foreign investment in the tourism, transport and telecommunications sectors. This policy garnered the consensus of the electorate and the FNM was confirmed in power after the landslide victory obtained in the legislative elections in March it set as its objectives the fight against crime and corruption, particularly in the public administration sector, and the recovery of the economy through cuts in public spending and incentives for foreign investment in the tourism, transport and telecommunications sectors. This policy garnered the consensus of the electorate and the FNM was confirmed in power after the landslide victory obtained in the legislative elections in March1997.
In foreign policy, the Bahamas maintained close ties with the United States, with which they had developed intergovernmental agreements to combat drug traffickers since the late 1980s. Conversely, relations with Haiti and Cuba worsened due to massive illegal immigration and forced repatriation initiated by the Nassau government starting in 1994. In May 1997 the Bahamas established diplomatic relations with the People’s Republic of China, at the same time interrupting those with Taiwan.
