The Bahamas is an archipelago of 700 islands and 2000 cays. At its closest point The Bahamas is only 45 miles from the coast of Florida. It received independence from Great Britain in 1973. Most of the population is descended from African slaves many of whom were brought to The Bahamas by British loyalists who left the United States after the Revolutionary War. Most of the population resides on the island of New Providence, where Nassau is located, and in Freeport on the island of Grand Bahama. Smaller settlements are scattered over the other islands of The Bahamas, known as the “Family Islands”.

The Bahamas is a politically stable, middle-income, development country. Following general elections in May 2007, The Bahamas experienced a return of power to the Free National Movement party with a 23-18 majority in the House of Assembly.

ECONOMIC AND TRADE HIGHLIGHTS

Nearly 60% pf the Bahamas’ Gross Domestic Product (GDP) is derived from tourism. Financial services constitute the second most important sector of the economy and accounts for up to 15% of GDP. Agriculture and industry together account for less than 10% of GDP. The country produces some chemicals and pharmaceuticals for export, along with rum and industrial salt.

The International Monetary Fund (IMF) forecasts that the Bahamian economy will grow by 4.5% (in real terms) in 2007, supported by a rise in tourism related foreign investment activities and expansion in the construction sector. Ongoing resort developments lead construction activity alongside increased residential and commercial housing investments. The continued momentum of these projects will depend, however, on liquidity conditions, and the rate at which foreign investments are approved. Foreign direct investment amounted to $705.8 million in 2006 of which $233.2 million or 33% represented the sale of land to international persons. In 2006 the labor force consisted of $181,891. The Government and the tourism industry are the country’s largest employers. With the completion of Phase III of Atlantis, it now employs 10,000 people. Atlantis is the largest single employer in The Bahamas outside of the government itself. The Bahamian dollar is fixed on par with the United States dollar and the Government is firmly committed to maintaining this exchange rate.

ECONOMIC INDICATORS