The Bahamas is an investment grade country with a high level of GDP per capita compared to the rest of the Caribbean, despite a deteriorating balance sheet and subdued economic growth. The Bahamas has a stable political system and business-friendly policy predictability. Its debt ratios are considered manageable but have become an increasing burden for Bahamas’ fiscal position. The economy remains primarily dependent on tourism and offshore banking, with limited diversification and weak growth potential. Tourism relies heavily on the United States, as American visitors drive the sector in the country.