Premier warns of slower GDP growth for BVI
Premier and Minister of Finance Dr Natalio Wheatley has projected a slowdown in the territory’s Gross Domestic Product (GDP) growth by the end of 2024, citing multiple economic pressures.
In his budget address to the House of Assembly on Monday, November 11, Premier Wheatley outlined factors impacting the GDP, noting, “The rate of expansion of GDP is expected to be less rapid by the end of 2024 due to a combination of long-term and short-term influences, including high borrowing costs, diminishing savings, continued inflation, the lingering effects of the pandemic, and conflicts in the Middle East and Ukraine.”
He also highlighted the impact of natural disasters on economic growth.
Despite these challenges, the Premier noted that the BVI’s economy has remained stable in 2024. He reported a projected GDP of $1.67 billion for 2023, reflecting an 8.6% increase from 2022.
Unveiling a $407.9 million budget for 2025 under the theme “Building a Sustainable Nation: Laying the Blocks of Success,” Dr. Wheatley said taxes will generate $379.9 million, supplemented by $25.5 million from other revenues and $2.5 million in grants. The budget allocates $407.9 million for recurrent expenditure and $60.7 million for capital projects, covering critical infrastructure improvements.
Key initiatives funded include the construction of a new West End ferry terminal, social housing, waste management, and road infrastructure. Significant investments are also allocated to education and healthcare, focusing on enhancing school facilities and healthcare centres.
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My God! The serpent and his disciples! Spouting venom and ignorance! Yet, we the people, just stand there mesmerized and do nothing to save ourselves!
can offer a couple of solutions , there are a couple of cliffs here ,you
don’t have to
have a license
to jump over one or go out in thr sea give yourself some cuts on your body and abd the sharks would be very happy to have for lunch
Government is doing that for us all. No worries. Pay taxes, get Fu@ked!!
explain in detail how the GDP of the BVI will be affected by:
1)The alleged lingering effects of the pandemic, and
2)The wars in the Middle East, Ukraine and Russia.
I presume you are asking these questions of the Premier. Since it’s unlikely he will respond here, let me see if I can help you.
During the Covid-19 pandemic, world economies were adversely affected. The world came to a standstill and global economic activity was impacted negatively.
Specifically, the Gross Domestic Product of practically all countries came to a standstill and productivity largely ceased due to governmental restrictions on movement and travel to protect populations from the illness.
Post covid, countries have been battling inflation as the price of goods and services increased.
That inflation is still a reality today. Some countries have been doing better than others to reduce inflation (i.e. US), but others are still struggling with the high costs for everything inclusive of energy cost. You see that reflective in our local supermarkets as most goods are imported.
The wars in Ukraine and the Middle East are significant factors affecting global economies as the price of oil has gone up since Russian gas has been taken off market from the West.
Middle Eastern oil, a traditional major oil producer, has been impactful as well. With Iranian oil being blacklisted and Venezuelan oil being sidelined due to American sanctions, you have a whole bunch of oil off the global market.
That translates to higher gas prices. Since most of our goods are made else where, the cost to buy oil in a constricted oil marketplace and transporting them around the world has skyrocketed due to economic supply and demand.
Breaking that down in layman term: The supply of global gas has gone done, and the demand has increased. This translates to higher prices for everything.
We can anticipate the price of oil to remain high and the resultant cost for goods to similarly remain high so long as middle eastern oil (Iran, Iraq), Russian oil, and Venezuelan oil remains off the global marketplace because we are a part of the global economy.
Post covid, once the world’s economies began to emerge from the pandemic, the price of goods and services went up. That is because it became more expensive to buy things be it food, clothes, vehicles or what have you.
In short, world economies entered a period of inflation, and many are still battling high inflation.
The day the middle east settles down, the war between Ukraine and Russia ends, and Venezuelan oil reenters the market, and these off market oils reenter the global marketplace, is the day countries may finally get a grip on inflation.
With these major oil producers oil remaining off the global markets for various reasons, one can expect to see higher prices for everything in the indefinite future.
To avoid this in the future, mankind needs to develop alternative renewable no fossil energy source, but we are a long way off from doing so.
I think you missed the sarcasm!
A US backed war should have zero effect on the BVI and a pandemic that happened in 2021 which was 3 years ago. Maybe just maybe spending thousands of dollars on music festivals and relying only on tourism as your main source of income is the issue. Just maybe.
Consider the halcyon days when the BVIs GDP was more than $ 1 billion!
need to bring in someone from T&C, Bermuda, or the Bahamas to turn this territory around.
How can a US backed war have zero effect when we have sanctioned Russia at the order of the UK.
Every time a war kicks up our financial service is used as a tool of economic war to our own local detriment.
How much that white elephant ferry terminal supposed to cost?
Bet it runs over 200 million.