Virgin Islands, British 

Virgin Islands, British country policy

Policy established 12 November 2009

• Case-by-case assessment

Country class: 2

Virgin Islands, British country facts

COUNTRY TEXTSHEET © Atradius Economic Research
Date :  15 October 2009
Country :  UK VIRGIN ISLANDS 

POLITICAL SITUATION : STABLE

Head of state : QE II, represented by governor-general David Pearey.
Nature of regime : Virgins are UK Overseas Territory; democracy.
Form of government : Government of the Virgin Islands Party, headed by p.m. Ralph O’Neal.
Internal situation :  UK Virgins are British overseas territory with limited self-rule (since 1967). In August 2007 VIP defeated the ruling National Democratic Party, gaining 10 of the 13 seats in parliament. 
International relations : UK government is responsible for international relations.

INTERNAL ECONOMIC SITUATION : SLOWDOWN IN 2009
Status : Population: 20.500. GDP/capita $45.000
Most important sectors : Financial and business services and tourism (92% GDP).
Energy situation : Bad.
General situation : The economy is closely tied to the larger and more populous US Virgins; US$ is legal currency. Tourism and offshore dominate the domestic economy underpinning high GDP-growth in the last few years. However, in 2009 global recession has badly hit the domestic economy. In 2002 OECD removed the UK Virgins from the list of uncooperative tax heavens. The islands are prone to tropical storms and hurricanes. Low inflation (appr. 2% p.a.).

EXTERNAL ECONOMIC SITUATION : TRADE DEFICITS
Main sources of foreign exchange : Services; rum, fruit. 
Main foreign markets : USA, incl. US Virgins and Puerto Rico.
Main expenses of foreign exchange : Building materials, food.

Balance of payments 
Trade balance : Negative: appr. 15-20% GDP.
Remarks : -