Bahamas, The Economy Profile 2009

Economy - overview

The Bahamas is one of the wealthiest Caribbean countries with an economy heavily dependent on tourism and offshore banking. Tourism together with tourism-driven construction and manufacturing accounts for approximately 60% of GDP and directly or indirectly employs half of the archipelago's labor force. Steady growth in tourism receipts and a boom in construction of new hotels, resorts, and residences had led to solid GDP growth in recent years, but tourist arrivals have been on the decline since 2006 and will likely drop even further in 2009. Tourism, in turn, depends on growth in the US, the source of more than 80% of the visitors. To help offset the effect of the global economic downturn, particularly on employment, the INGRAHAM administration plans to engage in infrastructure projects. Financial services constitute the second-most important sector of the Bahamian economy and, when combined with business services, account for about 36% 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 combined 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.

GDP (purchasing power parity)

$9.093 billion (2008 est.)
$9.231 billion (2007 est.)
$8.98 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$7.463 billion (2008 est.)

GDP - real growth rate

-1.5% (2008 est.)
2.8% (2007 est.)
4.6% (2006 est.)

GDP - per capita (PPP)

$29,600 (2008 est.)
$30,200 (2007 est.)
$29,600 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 3%
industry: 7%
services: 90% (2001 est.)

Population below poverty line

9.3% (2004)

Labor force

175,500 (2007)

Labor force - by occupation

agriculture 5%, industry 5%, tourism 50%, other services 40% (2005 est.)

Unemployment rate

7.6% (2006 est.)

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: 27% (2000)

Budget

revenues: $1.03 billion
expenditures: $1.03 billion (FY04/05)

Inflation rate (consumer prices)

2.4% (2007 est.)

Central bank discount rate

5.25% (31 December 2008)
5.25% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
5.5% (31 December 2007)

Stock of money

$1.255 billion (31 December 2008)
$1.274 billion (31 December 2007)

Stock of quasi money

$4.637 billion (31 December 2008)
$4.324 billion (31 December 2007)

Stock of domestic credit

$7.883 billion (31 December 2008)
$7.395 billion (31 December 2007)

Industries

tourism, banking, cement, oil transshipment, salt, rum, aragonite, pharmaceuticals, spiral-welded steel pipe

Industrial production growth rate

NA%

Electricity - production

2.05 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

1.793 billion kWh (2006 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

0 kWh (2007 est.)

Oil - production

0 bbl/day (2007 est.)

Oil - consumption

26,830 bbl/day (2006 est.)

Oil - imports

69,780 bbl/day (2005)

Oil - exports

transshipments of 38,740 bbl/day (2005)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2007 est.)

Natural gas - consumption

0 cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

$-1.442 billion (2007 est.)

Agriculture - products

citrus, vegetables; poultry

Exports

$674 million (2006)

Exports - commodities

mineral products and salt, animal products, rum, chemicals, fruit and vegetables

Exports - partners

US 20.8%, Singapore 18.2%, Poland 17.5%, Germany 7.3%, Japan 7.2%, Guatemala 5.5%, Switzerland 4.7% (2008)

Imports

$2.401 billion (2006)

Imports - commodities

machinery and transport equipment, manufactures, chemicals, mineral fuels; food and live animals

Imports - partners

US 27.1%, Japan 17.8%, South Korea 14.7%, Singapore 7.9%, Venezuela 5.4% (2008)

Debt - external

$342.6 million (2004 est.)

Market value of publicly traded shares

$NA

Economic aid - recipient

$4.78 million (2004)

Currency (code)

Bahamian dollar (BSD)

Currency (code)

BSD

Exchange rates

Bahamian dollars (BSD) per US dollar - 1 (2008 est.), 1 (2007), 1 (2006), 1 (2005), 1 (2004)

Fiscal year

1 July - 30 June