Economy of Bermuda

Bermuda, a British Overseas Territory, enjoys one of the highest per capita incomes in the world, having successfully exploited its location by providing financial services for international firms and luxury tourist facilities for 360,000 visitors annually. The tourist industry, which accounts for an estimated 28% of GDP, attracts 84% of its business from North America. The industrial sector is small, and agriculture is now severely limited by a lack of suitable land. About 80% of food is imported. International business contributes over 60% of Bermuda's economic output; a failed independence vote in late 1995 can be partially attributed to Bermudian fears of scaring away foreign firms. Government economic priorities are the further strengthening of the tourist and international financial sectors.

Bermuda has enjoyed steady economic prosperity since the end of World War II, although the island has experienced recessions, including during the early 1990s, when the contraction of the economy led to a population reduction of 2,000 people (as many long-term residents found their work permits were not renewed), and a mild recession in 2001–02, both paralleling recessions in the United States. Its economy is based primarily upon international business (especially re-insurance, for which it is now a world centre) and tourism, with those two sectors accounting for more than 70% of the total balance of payments current account foreign exchange receipts. However, the role of international business in the economy is expanding, whereas that of tourism is contracting.

As of 2012, Bermuda has a GDP (PPP) of US$4.5 billion, with a real growth rate of 4.6% and a per-capita PPP of US$69,900. 0.7% of the GDP consists of agriculture, 7% of industry, and 92.3% of services (2012 est.). For the 2004-05 fiscal year, the government had revenues of US$738 million and expenditures of US$665 million.

19% of the population is below the poverty line as of 2000. The inflation rate (consumer prices, as of 2005) is 2.8%. 19% of the total labour force of 38,360 is in clerical occupations, 22% services, 3% labourers, 17% professional and technical, 15% administrative and managerial, 19% sales, and 3% agriculture and fishing; there is an unemployment rate of 2.1% as of 2004.

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