OVERVIEW: The Free National Movement, led by Hubert Ingraham, took office for a five-year parliamentary term in May 2007 with a small, but workable, five-seat majority. Relations with the US will remain of the utmost importance, owing to the Bahamas' dependence on the US tourism market and the US role in controlling drug-trafficking. Owing to ongoing uncertainty regarding tourist arrivals and investment, we have reduced our forecast for GDP growth in 2008-09 to 1-3%.

Source: Bahamas: Country outlook