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The Bahamas is driven by tourism and financial services. Tourism, the mainstay of the economy, directly or indirectly involves more than half of the population and accounts for more than 60% of GDP. Manufacturing and agriculture together contribute less than 10% of GDP and show little growth. Because of the absence of direct taxation, the Bahamas has also become a financial haven for the activities of a large number of banking and trust companies, mutual funds, investment firms, and offshore sales and insurance companies. The efforts of government of Bahamas have led to establishment of a steady economy. Overall growth prospects in the short run will depend heavily on the fortunes of the tourism sector and continued income growth in the US which accounts for the majority of tourist visitors.
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