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's easy business environment has allowed the establishment of a major global centre for reinsurance, providing offshore services to insurers from North America and beyond. A recent wave of consolidation has yet to finish, although the greatest moves may be behind us.
Bermuda is firmly established within the framework of the global insurance market, providing reinsurance services to companies in North America primarily, but also on a global scale. Long-term reinsurance saw significant growth in 2013, but remains far smaller than the non-life sector. Non-life cover prominently features catastrophe reinsurance, providing cover for insurers exposed to the risks posed by hurricanes, floods, fires and other natural disasters. In recent years, in part because of falling catastrophe premiums, Bermuda's...
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.
We forecast mixed fortunes for the Caribbean in 2015, with most islands seeing growth in tourist arrivals but a few registering declines. The latter include Barbados (0.6%), Bonaire (6.1%), the Dominican Republic (1.5%) and St Vincent (1.6%). We believe that these declines reflect the drop of 1.2% in arrivals from Europe in 2015, with these economies usually registering strong arrivals from Europe. However, overall the Caribbean will see a net increase in tourist arrivals in 2015, as improving consumer confidence in the US leads more US tourists to visit the region,...