Bermuda is a British Overseas Territory in the North Atlantic Ocean. It is approximately 1,070 km east-southeast of Cape Hatteras, North Carolina; 1,236 km south of Cape Sable Island, Nova Scotia; and 1,759 km north of Cuba. The capital city is Hamilton. Bermuda is self-governing, with its own constitution and its own government, which enacts local laws, while the United Kingdom retains responsibility for defence and foreign relations.
Bermuda's two largest economic sectors are offshore insurance and reinsurance, and tourism. Bermuda had one of the world's highest GDP per capita for most of the 20th century. Recently, its economic status has been affected by the global recession. The island has a subtropical climate and lies in the hurricane belt and prone to related severe weather; however, it is somewhat protected by a coral reef that surrounds the island and its position at the north of the belt, which limits the direction and severity of approaching storms.