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
Bermuda's prolonged recession continued into 2014, and we now expect this economic contraction to continue over the coming years. We expect that an international crackdown on offshore financial centres such as Bermuda will lead to a decline in financial services activity, one of the key contributors to the island's economy. Although tourism will rise, it will not be enough to offset tempered insurance activities.
Bermuda's current account will remain in surplus over the course of our 10-year forecast period, though the surplus will decrease to 10.4% of GDP by 2024, down from 17.4% in 2014, in line with our projections for slowing exports of tourism services and secular decline in off-shore finance.
Despite poor growth prospects, Bermuda will remain politically stable over the next 10 years owing to the...
Bermuda Industry Coverage (2)
BMI View: At present, we are forecasting relatively slow growth in both the life and non-life sectors of Bermuda's insurance market. The country remains one of the leading offshore insurance markets globally, and slow growth can be attributed largely to pricing softness in the dominant catastrophe insurance segment, with stronger growth expected in terms of demand for various life insurance products. On a local level, rising demand for health insurance will be the primary source of growth in a comparatively small market.
BMI View: Arrivals growth in the Caribbean will pick up to 2.7% in 2016, reflecting improved visitor numbers from Europe and North America. The Dominican Republic, St Eustatius and Cuba are expecting the highest rate of arrivals growth, but all tourism markets will experience growth in 2016.
We hold a positive outlook on the Caribbean tourism market in 2016, with growth of 2.7% marking an improvement after the lower growth rate of 1.7% in 2015. This arrivals growth is led by strong arrivals from North America and particularly from Europe. European arrivals declined in 2015 and a return to growth in 2016 will bring benefits in terms of tourist expenditure, as well as encouraging more longer-term investment. Moreover, the rebound in European tourism to the Caribbean underlines the resilience of the region's market, which remains a highly popular destination despite its relative expense....