Virgin Islands, U.S. 

Virgin Islands, U.S. country policy

Policy established 27 April 1997

• Case-by-case assessment

Country class: 1

Virgin Islands, U.S. country facts

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

POLITICAL SITUATION : STABLE
Head of state : Governor John DeJongh.
Nature of regime : Virgins are US Outlying Territories; democracy.
Form of government : Government of the Democratic Party of the Virgins.
Internal situation : US Virgins elect one non-voting delegate in the US House of Representatives; its inhabitants are US citizens since 1927. The islands are constitutionally an “unincoporated  territory of the United States”. The Organic Act gives the US Department of Interior full jurisdiction; some limited legislative powers are given to a single-chambered legislature, composed of 15 senators. Referenda for greater autonomy have been rejected. Some racial tensions (black-white) and rising crime.

INTERNAL ECONOMIC SITUATION : SLOWDOWN IN 2009
Status : Population: 110.000; GDP/capita $ 39.200.
Most important sectors : Services, esp. tourism: 80% GDP, oil refinery.
Energy situation : Bad.
General situation : Moderate GDP-growth (appr. 3%) largely based on tourism. US recession exerts an economic slowdown and a fiscal deficit as export and tourist revenues have dwindled in 2009. Low inflation (appr. 2-3% p.a.). US Virgins are vulnerable to substantial damage from hurricanes
Economic policy : The islands are badly hurt by the global financial and economic crisis; a budget shortfall of appr. $ 200 mln (5% GDP) has to be funded by the Federal US State Fiscal Stabilisation Fund. The US Internal Revenue Service (IRS) is investigating tax loopholes in the US Virgins. US$ is legal tender.

EXTERNAL ECONOMIC SITUATION : TRADE DEFICITS
Main sources of foreign exchange : Tourism; rum, refined petroleum.
Main foreign markets : United States.
Main expenses of foreign exchange : Crude oil, construction material, food.
Foreign debt 
Level :  - 

Balance of payments
Current account balance : Negative: 2009 $ 620 mln (appr. 12% GDP). 
Remarks : In 2009 imports of goods and services ($ 14.5bn, cif) exceed the exports  ($ 13.9 bn, fob), leaving the Virgins with a gap of $ 620 mln.