The Bahamas - Statistical Appendix (Electronic book text)

1. The Bahamas is a small open economy, based mainly on tourism, foreign direct investment, and offshore financial activities. The one-to-one peg between the Bahamian and U.S. dollars has been in place for 36 years, and has provided a stable investment climate. The country has the third largest income per capita in the western hemisphere region, with a good track record of political stability, and a relatively high credit rating within the region. Tourism accounts for almost half of GDP, with over 80 percent of tourists from the United States. FDI, mostly related to tourism and second-home buyers, fuels construction, domestic employment and services. The financial sector, including the offshore sector, accounts for about 20 percent of economic activity. Exchange controls are maintained on capital transactions, narrowing the field of investment opportunities for local wealth, largely to real estate and government debt.