The Economy of Bermuda

In 2007, Bermuda has the highest GDP per capita in the world with $91,477 per-capita which is 50% higher than that of the United States. Bermuda is regarded an offshore financial center; it has well-merited reputation for the integrity of the government’s financial regulatory system. A lot of foreign and big international companies are based on Bermuda such as the Tyco International Ltd., Bacardi Ltd., Accenture Ltd., ACE Ltd., Intelsat Ltd., Jardine Matheson Holdings Ltd., and Foster Wheeler Ltd. In 2003 the CIA Factbbok records the average cost of house in Bermuda at $976,000 and by in 2007 real estate agencies claimed it reached $1.84 million. Bermuda changed its Bermuda pound to the Bermuda dollar which is pegged to the US dollar in February 1970.

As of 2002, the country’s GDP is composed of the services (89%), industry (10%), and agriculture (1%). Bermuda is known in the world for providing financial services (insurance, investments funds, reinsurance, special purpose vehicles) to international firms and luxury tourist facilities which account for more than 360,000 visitors each year. The Bermuda Stock Exchange (BSX) is currently the biggest fully electronic offshore securities market in the world with a market capitalization (not including mutual funds) of more than $330 billion; it has about 400 securities listed 300 of which are offshore funds. The country’s main trading partners include the US, Canada, the UK, and the Caribbean countries.

Tourism also plays an important role in Bermuda’s economy. Every year, this island attracts more than half a million tourists 80% of whom are from the United States. But the tourism industry has seen a significant decline in the last past years. Other visitors are from the UK and Canada and arrived in the country through a cruise ship or by air via the Bermuda International Airport.