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BVI’s economy likely to grow by 2.2% this year

The commercial district of Wickhams Cay.

The British Virgin Islands’ economy is expected to see a slight growth this year, Deputy Financial Secretary (DFS) and policy analyst, Dawn Alexander-Joseph has said.

In a presentation before the 2019 Standing Finance Committee (SFC) in April, Joseph said the territory is expected to experience 2.2 percent growth for 2019.

She said this growth “would again be primarily driven by the growth in the construction industry, increase investments in public services and infrastructure, and continued recovery in the tourism sector”.

This newest projection comes after the territory recorded similar economic growth for 2018. The territory’s gross domestic product that year was 2.3 percent.

Joseph explained that the growth was “mainly driven by positive performance in financial services, the construction industries due in part to the ongoing rebuilding following the natural disaster events of 2017, as well as the rebounding of the tourism industry”.

Revenue collection surpasses projected amount

The Deputy Financial Secretary also reported to the SFC that revenue collection for the BVI in 2018 surpassed the projected amount. The territory budgeted for $311 million. However, the unaudited figures showed that $372 million was collected.

According to Joseph, the $61 million difference was from the “outperformance” of the financial services industry, the increase in the construction industry, and other areas.

Notably, the growth noted in 2018 was also partly as a result of expanded business and an increase in fees which came into effect on January 1.

“Additionally, there was an increase in new incorporations over 2017 which also contributed to the growth,” Joseph noted.

She further stated that “by October 2018, they had cleared over $2 million in revenue collection for the first time, and surpassed previous collections for the past five years.”

More revenue was also collected than the amount that was budgeted for between 2011 and 2015, Joseph said. A slight decrease occurred in 2016 and continued to decline through 2017, but rebounded in 2018 and outperformed the estimated figures, she added.

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7 Comments

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  1. sam the man says:

    Reality check needed – I do not trust any of these releases we have a recovering Island that is much slower on regrouping than other places…whys that? we have replaced the No Direction Party with the VIP who made bold claims of how to improve things after 100 days I’m not convinced…tell me I’m wrong to feel nervous that its just the same old. Reason – due diligence was promised yet already we have abandonment of proper tender processes because the effort has not been made? is this a sign of what’s to come – Andrew we expected much better please lead and install some proper discipline we pay civil servants many dollars and we need value for money rather than them sleeping at there desks – yes I’ve witnessed that!

    Like 5
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    • Smoke says:

      This is just a smoke and mirror report. Cruise ships leaving, corporations leaving and things are better. Stop the BS. There is a rise in construction because some repairs from the hurricane are taking place. Stop playing with the numbers and tell the truth.

      Like 9
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  2. Diaspora says:

    It is encouraging that the economy will likely grow by 2.2% in fiscal year 2019. However, one number often does tell the whole story. What was the projected growth and did the 2.2% exceed it or underperformed? What is the inflation rate for 2019? How will the growth help the masses at the lower end of the economic ladder? Has the price for the proverbial basket of goods increasing or declining? Well, the cost of living is skyrocketing. What actions are being taken to lower the proverbial basket of goods, ie, the stratospheric rise of cost of living?

  3. Sam the man says:

    I do not believe this – we have much to do until we start getting into positive growth figures – fake news sadly

  4. CW says:

    OH LOOK, MORE NEGATIVE COMMENTS ABOUT SOMETHING GOOD. TYPICAL BVI AND THE HATERS PARADE

    WHAT HAVE YOU DONE TO MAKE THINGS BETTER STRUPES. COMPLAINING DOESN’T COUNT STRUPES

    Like 1
    Dislike 3
  5. Well well says:

    It’s a very good job that those financial services expats kept everything going and stood by us at our most difficult time. Imagine if they had just given up on us.

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