Though Bermuda's economy has no oil, gas or heavy industries the island is a well known tourist resort. Every year more than 400,000 tourists visit the island and they are mostly from America. An investment grade level for Bermuda
On September 9, Fitch Ratings, awarded Bermuda ratings of “AA+”. Fitch Ratings affirmed Bermuda’s credit ratings at an investment grade level with a stable outlook. In doing so, Fitch Ratings noted the following:
“A longstanding commitment to prudent fiscal policy underpins Bermuda's creditworthiness and provides a strong starting position for facing the global economic crisis.”
Money matters
BMA Regulatory Update September 2009 reported that money supply in Bermuda expanded by 0.33 percent in the second quarter of 2009 and by 0.44 percent over the course of the past four quarters due to a modest increase in deposit liabilities.
BD$ loan demand continued to exceed BD$ deposits, with the deficit increasing slightly from 132.5% to 133.5% during the second quarter. The balance of BD$ loan demand continues to be primarily funded by US$ deposits.The foreign currency position of the banking and deposit taking sector remained in deficit during the quarter, with net foreign currency liabilities exceeding net foreign currency assets by BD$ 434 million. However, this deficit narrowed sharply during the quarter (BD$ 217 million decrease) due to a faster increase in net foreign currency assets of roughly 3.5% compared to an increase in net foreign currency liabilities of 1.9%.
Bermuda Stock Exchange (BSX)
Total market capitalization of the BSX during the second quarter reached $310 billion. The domestic market, which comprised approximately $56 billion of this market capitalization, rose by 16% during the quarter.
