The Economy of Bermuda Research Paper Example | Topics and Well Written Essays - 1250 words - 1

The Economy of Bermuda - Research Paper Example The country has enjoyed steady economic superiority since the end of the Second World War, although it has been affected by recession since 2007 following the global recession. The country enjoys the fourth highest per capita income, which is 50 percent higher than that of the US. The industrial sector mainly focuses on construction, and there is little agriculture since only 20 percent of the island is arable. Bermuda has a robust financial regulatory system making it an important regional and global offshore financial center. International business is the major foreign exchange generating industry in the country (Anderson, 2011). Bermuda is a reinsurance center and an insurance region with firms writing significant business from USA and U.K. In 2010, 15,078 international companies were registered in the island, many of which are U.S owned (Reinsurance Association of America, 2011). These companies spent approximately $2 billion in the country in 2009, making them an important source of foreign exchange. This sector provided $1.5 billion in its total output corresponding to 26.1 percent of the total GDP. International business is also the third largest employer in the country. The sector had 4,287 jobs in 2010, a reduction from 4,431 in 2009. This reduction has made tourism the largest employer in Bermuda. Bermuda has little exports and manufacturing since most manufactured goods and foodstuffs are imported. The value of imports rose from $551 million in 1994 to 1.051 billion on 2009. USA is the primary trading partner for Bermuda, with $663 million coming from U.S imports (U.S. Bureau of Census, 2011). Other countries involved in the import chain are the UK, Canada, and Caribbean countries. Bermuda’s exports are mainly re-exports of pharmaceuticals. These exports are valued at $783 million and export partners include Spain, Germany, Denmark, and the UK.