The Bahamas, as a small island developing state (SIDS) with few natural resources, primarily depends on tourism and financial services as the drivers of the economy. Its geographic location of less than 60 miles off the coast of the southeastern United States (US) is ideal, as a strategic location near the world's largest and most significant consumer markets of North, South and Central America.

In 2022, the National Accounts Section of the Bahamas, National Statistical Institute, informed in a report that the total value of goods and services produced in the Bahamian economy was estimated at $12.9 billion in nominal prices, and at $12.85 billion in real prices. The Bahamas’ GDP per capita, stated at US$ 26,705, is considered one of the highest in the Americas, however, the high net worth individual (HNWI) residents living in the country skews this GDP statistic.

The tax neutral jurisdiction derives its revenue from customs duties, property taxes and stamp duties.

While the country faced significant setbacks in its economy by the devastations resulting from Hurricane Dorian followed by the global pandemic, statistics as of the years 2022 and 2023 reveal that the economy has been gradually showing signs of recovery to near pre-Covid economic vibrancy.

The proximity to North America provides for The Bahamas to have a thriving tourism industry, as approximately 90% of the visitors are from the United States (US) and Canada. The Bahamas welcomes tourists annually, along with investors, businessmen and second-home owners, which contributes to the gradually recovering tourism sector as tourism figures increase. Prior to the Covid pandemic, over 6 million visitors came to The Bahamas annually.

Nassau is an important port of call for the Caribbean cruise ship industry, with a harbor that can accommodate the new generation of 6,000 passenger mega ships.

The tourism sector includes related construction and retail, accounting for 50% of Gross Domestic Product (GDP), and employs about fifty percent of the country’s labour force. The other economic sectors are: Financial 20%, Industry 11.29%, Agriculture 0.49%, and Other services 18%. New investment opportunities are emerging in several areas such as e-business, manufacturing, light industry, land development and transshipment.

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