Our comprehensive assessment of Bermuda's operating environment and the outlook for its leading sectors are formed by bringing together a wealth of data on global markets that affect Bermuda, as well as the latest industry developments that could impact Bermuda's industries. This unique integrated approach has given us an impeccable track-record for predicting important shifts in the markets, ensuring you’re aware of the latest market opportunities and risks in Bermuda before your competitors.
Bermuda Country Risk
We believe that rising gold production, a gradually improving tourism sector, and stronger private consumption growth will drive robust real GDP growth rates in the Dominican Republic in the coming years.
We expect Puerto Rico to remain in a recession through fiscal year 2015 amid high unemployment and weak investment, and see a high likelihood of debt restructuring by the commonwealth's electric power authority (PREPA) this year.
We expect the Cuban economy to accelerate in the coming years, on the back of the government's drive to attract greater levels of investment, and on continued expansion of the consumer sector. This will help to offset weakness in the export sector, and rising demand for imports.
Major Forecast Changes:
Bermuda Industry Coverage (2)
BMI View: Bermuda will cement its status as one of the leading offshore insurance markets over the next few years as consolidation between the country's larger providers leaves firms better placed to withstand competition from other jurisdictions. Reinsurance and catastrophe insurance will remain important products lines, though we expect life insurance premiums to grow faster than non-life underwriting over the forecast period.
BMI View: The ongoing economic uptick in the US will translate into rising departures to the Caribbean in 2015, with St Lucia, St Eustatius, the Cayman Islands and Cuba set to perform particularly well. We see particular opportunities in Cuba, with the US-Cuba diplomatic rapprochement boosting prospects for a relaxation of the bilateral tourist regime.
The Caribbean is a popular tourist market, attracting high numbers of visitors from North America and Europe. Its many beaches and islands have encouraged the development of a high-end, resort-led accommodation sector, with very few budget alternatives on offer. For this reason, the Caribbean is a relatively expensive destination and can be vulnerable to economic fluctuations in its major source markets. In addition, transport infrastructure is lagging behind hotel infrastructure, although we note that there are several major airport expansion projects under way....