Bahamas profile

Demography and Health

The Bahamas is a small archipelagic country with a population of about 401,283 in 2024, reflecting a compact yet stable demographic base. Net migration in 2024 stood at roughly 1,018 people, indicating a modest influx that can influence population growth and labor supply over time. Fertility and mortality indicators point to a slowly changing age structure: births are recorded at a crude rate of 10.9 per 1,000 people, while the crude death rate is 8.71 per 1,000, suggesting a natural increase that is not rapid. Life expectancy at birth is 74.6 years, a relatively high figure for a small developing economy, signaling decent health outcomes overall. Under-5 mortality is 12.7 per 1,000 live births, signaling ongoing challenges in child health relative to higher-income peers but not an acute crisis. The health system shows capacity constraints in hospital beds, with 2.68 beds per 1,000 people in 2021, underscoring the importance of efficient care delivery and potential stress during health shocks. In terms of spending, current health expenditure accounts for 7.22% of GDP, and domestic general government health expenditure per capita (PPP, current international US$) is about 1,718, pointing to substantial public investment in health per person, even as resources must be allocated to maintain access and quality. Overall, demography and health data suggest a small population with stable growth, reasonable life expectancy, and a health system that remains capital-intensive relative to population size.

Economy

The Bahamas exhibits a high-income profile with a GDP per capita of 39,455 current US dollars in 2024 and a GDP per capita at PPP of 41,198 international dollars, indicating strong average living standards relative to many peers. Inflation is very low at 0.41% in 2024, supporting price stability, while unemployment sits at 8.64% in 2023, reflecting a relatively tight labor market by regional standards. The economy depends significantly on services, with exports of goods and services making up 37.8% of GDP in 2024, and imports representing 41.5% of GDP, illustrating a highly open economy with substantial external linkages. The current account balance is negative, at −6.65% of GDP in 2024, signaling a structural deficit that is typical for small, open economies with substantial import requirements and service-led income streams. Foreign direct investment, net inflows, are 1.52% of GDP in 2024, suggesting a moderate attraction to external capital, while high-technology exports are relatively small at 7,099 current US dollars, indicating limited high-tech manufacturing bundling into the export mix. Governance indicators show nuanced performance: regulatory quality is near the bottom end of the positive range (0.007), while the rule of law is moderate (0.18) and government effectiveness modest (0.27). Collectively, the economy appears resilient and affluent, yet exposed to external shocks given its openness and reliance on services and external capital flows.

Trade and Investment

Bahamas displays a highly open trade posture, with exports of goods and services equaling 37.8% of GDP in 2024 and imports at 41.5% of GDP, underscoring a broad external orientation and reliance on international trade for growth and consumption. The current account deficit of 6.65% of GDP reinforces the sense that external financing and tourism-related service revenues are essential to balance-of-payments dynamics. Foreign direct investment inflows amount to 1.52% of GDP in 2024, indicating a credible, though not overwhelming, level of investor interest in the Bahamian economy. The country’s logistics and trade facilitation environment receives a mid-range score on the Logistics Performance Index (2.5 out of 5 in 2022), suggesting there is room for improvements in the infrastructure that supports movement of goods. High-technology exports are relatively modest (about 7,099 US$ in 2023), reflecting a limited high-tech export base and signaling opportunities for diversification toward knowledge-intensive activities while leveraging a strong services sector to anchor growth.

Governance and Institutions

In governance terms, Bahamas shows a mix of strengths and vulnerabilities. Political stability and absence of violence/terrorism index is 1.01 (rank 25), signaling a reasonably stable political environment. Control of corruption is relatively favorable (1.27; rank 26), indicating some success in curbing misuse of public power. Government effectiveness stands at 0.27 (rank 71), while regulatory quality is near neutral (0.007) and the rule of law is modest at 0.18 (ranks 86 and , respectively). Taken together, the institutions appear capable of maintaining order and delivering public services but exhibit room for strengthening regulatory processes and legal institutions to support a more predictable business climate. The overall governance picture suggests a stable state with pockets of efficiency and governance challenges that could be addressed to improve the ease of doing business and policy implementation.

Infrastructure and Technology

Bahamas benefits from very high digital connectivity, with 94.8% of the population using the Internet in 2023, enabling broad-based access to information, digital services, and potential inclusion in the digital economy. Health infrastructure is characterized by 2.68 hospital beds per 1,000 people (2021), indicating capacity constraints that may affect acute-care delivery during health shocks or peak demand. The Logistics Performance Index score of 2.5 (2022) points to moderate efficiency in trade and transport-related infrastructure, offering both a solid foundation and clear opportunities for investment to improve throughput and reliability. Renewable energy consumption remains low at 1.1% (2022), signaling a heavy reliance on imported energy sources, while the country’s greenhouse gas emissions per capita are 5.13 t CO2e, reflective of an energy-intensive economy and ongoing sustainability considerations. The combination of high connectivity and limited renewables suggests a digital-ready but energy-import dependent infrastructure profile with clear scope for modernization and cleaner energy deployment to boost resilience and long-term efficiency.

Environment and Sustainability

Environmental data highlight a low share of renewables in final energy consumption, with renewable energy accounting for just 1.1% in 2022. This points to a high dependence on fossil fuels or imported energy, with potential environmental and energy-security implications as climate pressures intensify. Per-capita greenhouse gas emissions are 5.13 t CO2e, a figure that underscores the need for climate-smart policies in a vulnerability-prone island nation. Despite these challenges, the Bahamas sits in a favorable position to advance renewable energy adoption, given its insularity and potential for solar and wind resources, which could reduce import bills and enhance energy resilience. In parallel, continued monitoring of emissions and persistence of climate-related risks will be crucial for sustainable growth, especially for a small open economy with a significant tourism and services footprint that could be sensitive to environmental changes and energy costs.