Updated June 7, 2022
The Bahamas: An Overview
Political and Economic Environment
United States (see below), and has procured vaccines
The Bahamas, a Caribbean nation of some 700 islands off
through the COVID-19 Vaccines Global Access (COVAX)
the southeast coast of the United States, has been a stable
Facility, a mechanism developed by global health
parliamentary democracy since its independence from the
organizations to facilitate equitable vaccine distribution.
United Kingdom (UK) in 1973. The country’s bicameral
legislature has a 39-seat House of Assembly directly elected
Figure 1. Map of the Bahamas
for five-year terms and a 16-member appointed Senate.
Since independence, two political parties have dominated
elections, the center-left Progressive Liberal Party (PLP)
and the center-right Free National Movement (FNM). The
PLP was formed in 1953 as an opposition party to the
United Bahamian Party (UBP), which governed the
Bahamas when the country was under British rule. In 1967,
the PLP won control of the government and oversaw the
country’s independence from the UK. It ruled continuously
from 1967 until 1992 under the leadership of Lynden
Pindling, commonly referred to as the “father of the
nation.” The FNM was formed in 1971 by former members
of the UBP and dissidents from the PLP. Under the
leadership of Hubert Ingraham, the FNM won the 1992
general elections, governing over the next decade until
2002. Since then, the two parties have alternated winning
national elections.
Current Prime Minister Philip Davis led the PLP to a
landslide electoral victory in September 2021, winning 32
House of Assembly seats; the FNM, now led by Michael
Pintard, who serves as leader of the opposition, won 7 seats.
The difficult economic situation, brought about by the
damage caused by Hurricane Dorian in 2019 and, beginning

in 2020, the Coronavirus Disease 2019 (COVID-19)
Source: CRS.
pandemic, was a key factor that led to the PLP’s win in

2021. National elections are next due by September 2026.
The Bahamas at a Glance
Even before the start of the pandemic, the Bahamian
Population:
397,000 (2021, IMF est.)
economy had been hit hard when Hurricane Dorian caused
Area (square miles):
5,359, slightly smaller than
widespread damage to the northwestern Bahamian islands
Connecticut
of Abaco and Grand Bahama in September 2019. An Inter-
American Development Bank-led assessment estimated
GDP (current prices):
$11.1 bil ion (2021 est., IMF)
$3.4 billion in damages and losses. The COVID-19
GDP Growth
-23.8% (2020); 13.7% (2021, est.)
pandemic further damaged the Bahamas’ tourist-based
(constant prices):
8.0% projected (2022) (IMF).
economy, resulting in an economic contraction of almost
24% in 2020, one of the most severe in the Caribbean,
Per Capita GDP
$28,239 (2021 est., IMF)
according to the International Monetary Fund (IMF). The
(current prices):
economy began to recover strongly in 2021 with 13.7%
Life Expectancy:
74 years (2020, WB)
growth and projected growth of 8.0% in 2022, although
higher global commodity prices adds some uncertainty to
Sources: International Monetary Fund (IMF), “IMF Concludes 2022
the country’s economic outlook.
Article IV Consultation with The Bahamas,” May 9, 2022; World
Bank (WB).
As of June 7, 2022, the Bahamas reported 810 deaths from
the COVID-19 virus since the pandemic began, equivalent
About 40% of the Bahamian population has been fully
to a mortality rate of 205 per 100,000 people, according to
vaccinated to date. Vaccine hesitancy has been a significant
Johns Hopkins University statistics. The country has
challenge, and could be a factor in full recovery of the
received vaccine donations, most significantly from the
tourism-based economy.
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The Bahamas: An Overview
In 2020, the Central Bank of the Bahamas launched a
(financial services accounts for an estimated 20% of the
digital currency known as the Sand Dollar, a digital version
country’s gross domestic product). The report noted that the
of the Bahamian dollar, which is pegged one-to-one to the
Bahamas enacted legislation in 2020 and 2021 to enhance
U.S. dollar. The action was taken in the aftermath of
its anti-money laundering/combating the financing of
Hurricane Dorian as a way of ensuring that citizens have
terrorism (AML/CFT) regime and increased AML
access to needed currency and can receive aid more quickly
resources; it also stated that greater focus is needed on
when banks and ATMS are damaged by natural disasters.
small money transfers and the online gaming sector. In
According to the IMF, the sand dollar has the potential to
2020, the multilateral Financial Action Task Force removed
help foster financial inclusion and payment system
the Bahamas from its grey list of countries with deficiencies
resilience in the event of a natural disaster. The IMF also
in their AML standards, and in January 2022, the European
recommended that the Central Bank maintain careful
Union delisted the Bahamas from its list of high-risk
oversight of the initiative to safeguard financial integrity.
countries with AML/CFT deficiencies.
Some 30,000-60,000 Haitians or persons of Haitian descent
U.S. bilateral assistance to the Bahamas amounted to $28.6
live in the Bahamas, according to estimates cited in the
million in FY2019 and $10.3 million in FY2020 from all
State Department’s Country Reports on Human Rights
U.S. agencies (https://foreignassistance.gov/cd/bahamas/,
Practices for 2021. The report noted many persons of
latest full year available). The U.S. Agency for
Haitian origin lived in informal settlements with limited
International Development implemented more than two-
government services, although Haitian children generally
thirds of the FY2019 aid and almost half of the FY2020
had access to education and social services. The report
assistance to support recovery in the aftermath of Hurricane
noted that ethnic tensions and inequities persisted.
Dorian. DOD implemented much of the balance, for
equipment and training to help increase maritime and
U.S.-Bahamian Relations
border security and improve interdiction capabilities. In
The United States enjoys close economic linkages and
2021, DOD also donated three high-speed boats, radio
cooperative relations with the Bahamas, with the nearest
communications equipment, biometrics and forensics
Bahamian island, Bimini, just 45 miles from Florida. A
equipment, and a radar system to support Bahamian
majority of tourists visiting the Bahamas are from the
maritime and law enforcement efforts.
United States, according to the State Department,
highlighting the dependency of the tourism sector on U.S.
Since FY2010, the Bahamas has received support under the
economic conditions. Because the Bahamas has a services-
Caribbean Basin Security Initiative, a regional program that
based economy, the United States historically has run a
focuses on advancing citizen security and reducing illicit
large merchandise trade surplus. According to the
trafficking. Support has included the purchase and repair of
Commerce Department, U.S. imports from the Bahamas
maritime interdiction patrol assets; training and equipment
amounted to $450 million in 2021, whereas U.S. exports
for OPBAT’s counternarcotics operations; and technical
totaled $2.9 billion, with 36% in oil and gas products.
assistance, equipment, and training to strengthen Bahamian
law enforcement institutions.
Because the Bahamas is a major transit country for illicit
drugs bound for the United States and other markets—
To date, the United States has donated almost 296,000
largely marijuana from Jamaica and cocaine from South
COVID-19 vaccine doses to the Bahamas out of a pledged
America—cooperation on anti-drug efforts has been a
commitment of 379,000. Other COVID-19-related
central component of bilateral relations. U.S. agencies—
assistance has included the donation of health equipment
such as the Coast Guard, the Drug Enforcement
and Rhode Island National Guard aircraft support for the
Administration (DEA), the Department of Homeland
distribution of COVID-19 vaccine doses to several
Security’s Customs and Border Protection (CBP), and the
Bahamian islands.
Department of Defense (DOD)—assist the country in drug
interdiction efforts and cooperate closely with the Royal
Among other aspects of bilateral cooperation, CBP
Bahamas Police Force and the Royal Bahamas Defense
maintains preclearance facilities at airports in Nassau and
Force. The Bahamas participates actively in Operation
Freeport for those traveling to the United States. In
Bahamas, Turks and Caicos (OPBAT), a combined Coast
February 2022, the Transportation Security Administration
Guard, DEA, and government of Bahamas partnership to
established its expedited security screening process,
combat drug smuggling to and from the Bahamas.
PreCheck, at the Nassau airport, the first established outside
of the United States. The port of Freeport participates in the
According to the State Department’s 2022 International
Container Security Initiative, a CBP-run program that uses
Narcotics Control Strategy Report (INCSR), further
a security regime to ensure that all containers that pose a
progress against drug trafficking will significantly depend
potential risk for terrorism are identified and inspected
on Bahamian government efforts to combat corruption,
before they are placed on vessels destined for the United
increase extraditions, and strengthen prosecutions. It noted
States. The U.S. Navy also operates an underwater research
that the United States encourages the Bahamas to invest
facility, the Atlantic Undersea Test and Evaluation Center
resources in its courts to meet caseload demand and
(AUTEC), on Andros Island.
increase the speed of judicial operations.
Mark P. Sullivan, Specialist in Latin American Affairs
The 2022 INCSR notes that, as an international financial
center, the Bahamas is vulnerable to money laundering
IF10666
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The Bahamas: An Overview


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