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 : By virtue of its accommodating regulation and low-tax environment, Bermuda has developed a reputation as a global hub for offshore insurance services, with the country having developed a particular niche for itself as a global provider of reinsurance and risk transfer services.
Bermuda's insurance sector is an important element of the global insurance market. This is partly because of the key role played by major reinsurers in covering property and casualty risks in the United States (especially) and elsewhere. Bermuda remains a key centre in global terms for captive insurers. Life lines are relatively less important, although gross (re)insurance premiums are substantial by the standards of almost all other markets that are monitored by BMI. The key strengths of Bermuda are many, and are expected to persist through the forecast...
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,...