The Bahamas is made up of more than 700 islands, cays and islets, but only 28 of them are populated. In 2023, the population was 399,440. The Bahamas has a GDP of around USD 14.39 billion, with its main exports including:
8.7% of the Bahama’s GDP is from the energy sector
16th ranked on the 2024 Global Innovation Index (GII) among 20 countries in Latin America and the Caribbean
CAD 500 million in capital expenditures (CapEx) for advanced energy projects in 2024
44th ranked country in the world for energy consumption per capita in 2024, and 77th for energy consumption per GDP
30,000 estimated jobs in the Bahamas’ energy sector
Two Canadian energy companies have a presence in The Bahamas
30% target for renewable electricity generation in the Bahamas by 2030
536 megawatts (MW) of total installed capacity
The Bahamas relies heavily on tourism and financial services, like banking and investment. The country has a tax-neutral environment, which means there is no personal income tax, no capital gains tax, and no annual business tax filings. This makes it an attractive place to do business. The financial services sector, including emerging areas like fintech and cryptocurrency, plays a key role in the economy, positioning the Bahamas as a hub for financial technology.
Tourism and related services make up about 70% of the country's GDP and employ more than half of the workforce. The Bahamas expects to welcome more than 8 million visitors each year, many of which come from the United States (U.S.) The country is working to grow other industries to reduce reliance on tourism and finance. Industries of focus include:
The island of Grand Bahama is less dependent on tourism and has the most diverse economy in the country. Its capital, Freeport, is a free trade zone where many U.S.-owned businesses operate. Under the Hawksbill Creek Agreement of 1955, businesses in Freeport benefit from exemptions on most central government taxes and are regulated by the Grand Bahama Port Authority (GBPA).
The Bahamas is a high-income country, with a GDP per capita of CAD 31,458 in 2022. However, there is a significant gap between the income of the wealthiest individuals and the rest of the population. A small number of wealthy individuals contribute significantly to the country’s overall GDP, while many Bahamians earn much less.
The Bahamas has experienced a rebound in its economy, following the global financial crisis and recession. The rebound was aided by significant public sector-led infrastructural development and private sector initiatives in the tourism sector. The energy sector is transitioning towards sustainability, with a goal of 30% of its energy from renewable sources by 2030. The country is also addressing its reliance on fossil fuels and improving the efficiency of electricity transmission and distribution. In 2024, the Government of The Bahamas successfully launched its plan to transform the country’s electricity sector, building its resilience to climate change through local and international partnerships with private power producers and investors.
For more information on the energy sector in The Bahamas, please contact Yasmin M. Chong (yasmin.chong@international.gc.ca), Trade Commissioner.
