This region uses US currency and the fiscal year is October 1 - September 30.
Tourism, commerce and other services are major economic activities, accounting for nearly 60% of Virgin Island's GDP and about half the total civilian work. Close to two million tourists per year visiting the islands. Government is the largest single company. Small agricultural sector, with most food imported. The manufacturing sector consists of refining rum, electronics, pharmacy, and clock assembly. Significant rum production. Deliveries during the six-fiscal year period of 2016 totaled 8,136.6 million gallons of evidence.
In mid-February 2017, the USVI faced a financial crisis due to a very high debt level of $ 2 billion and a structural budget deficit of $ 110 million. The government introduced a "tax of sin" law that will introduce or increase taxes on rum, beer, tobacco products and sugary drinks, as well as internet purchases and timeshare unit owners. Governor Kenneth Mapp issued an order limiting the use of government-owned vehicles, freezing non-essential recruitment, deferred wage negotiations, and freezing unnecessary trips paid by GVI. He also suspended the negotiated wage increases, including those ordered by the US Court of Appeals.
Video Economy of the United States Virgin Islands
Economic history
During the slave days of what was then the Danish West Indies, the islands cultivated crops to earn money. On July 3, 1848, after the uprising the previous day, the governor Peter von Scholten gave emancipatory slaves, which contradicted the wishes of the Danish Crown. Although some planters refused to accept the removal, about 5,000 blacks were released while 17,000 others were enslaved. In those days, slaves worked mainly on sugar plantations. Other crops include cotton and tilapia. Over the ensuing years, strict labor laws were implemented several times, causing the planters to abandon their plantations, leading to significant population declines and the economy as a whole. In the late 1800s, many natural disasters were added to worsen the situation.
After the US bought the islands from Denmark in 1917, the situation began to improve, albeit very slowly. In 1970, the economy has been driven by tourism and manufacturing. Tourims began to increase significantly in the 1990s. Hotels, restaurants, and new stores began to build; this leads to more jobs and influx of immigrants that increase the population.
The HOVENSA oil refinery stopped exporting oil products in 2014. In the last year of full refinery operations, the value of exported oil products was $ 12.7 billion (fiscal year 2011).
The archipelago also received cover income, which generated about $ 100 million for the Virgin Islands in 2008. Federal taxes collected from rum and other refined spirits were ratified, or covered, to the government of the Virgin Islands. In 2013, the $ 241.4 million federal and grant program accounted for 19.7% of the region's total revenue.
The big banks have branches in St. Thomas, St. John and St. Croix. These include Citibank, Banco Popular de Puerto Rico, Bank of Nova Scotia, First Bank and Virgin Islands Community Bank.
Great airlines travel to and from St. Thomas and St. Croix.
Maps Economy of the United States Virgin Islands
Tourism
The tourism industry is the main industry, generating most of the GDP and a lot of the work of the islands. Nearly 3 million tourists per year visit (data 2013), mostly arriving on cruise ships. About 93 percent of tourists come from other regions of the United States.
An industry (World Travel & Tourism Council) publication shows that the money spent by foreign visitors amounts to $ 1,318.7 million. According to this report, Travel & amp; Tourism generates 5,000 direct jobs in 2014, to 10.8% of total employment and 11.3 per cent of GDP. (This includes jobs by hotels, travel agents, airlines and other passenger transport services, which also includes restaurant and entertainment activities supported directly by tourists.) Total contribution Travel & amp; Tourism to GDP (including the wider effect of investment) is 12,000 jobs in 2014 (27.0% of total employment and 29.9 per cent of total GDP).
The figures on this work are lower than those expected by some other agencies for the tourism industry based on their own research. (However, agencies are different for the types of jobs they classify as being in tourism.) For example, Euromonitor shows that over 50 percent of the workforce is employed in some tourism-related occupations.
The latest data (May 2016) from the Island's Economic Research Bureau shows that there are 37,613 non-farm payrolls and salary jobs on the islands. The report states that "the leisure and hospitality sector" employs an average of 7,333 people. However, the retail trade sector, which also serves many tourists, averaged 5,913 other jobs. Other categories that also include some tourism jobs include Arts and Entertainment (792 jobs), Accommodation & amp; Food (6,541 jobs), Accommodation (3755 jobs), Food & amp; Drinking (2,766 jobs). When that number is complete, it is clear that most of the 37,613 non-agricultural workers work in dealing with tourists; of course, serving the local population is also part of the roles of these sectors.
Job market
According to the CIA research, the service sector - tourism, commerce, and other services - is the main economic activity, accounting for most of the Virgin Island's GDP and about 80 percent of the work in 2003. (More recent data is not available from this source.) The major in 2013 is tourism, assembly clock, rum distillation, construction, pharmaceutical and electronics. Local workforce amounted to 50,580. But the last clock assembly facility closed in 2015.
Reports from the Bureau VI Economic Research calculated that the labor force amounted to 48,278 in the first half of 2016, with 42,752 people classified as civilians. The unemployment rate is 11.5%. Approximately 29 percent are employed by the public sector, making it the largest company.
The May 2016 report does not address major debts and provides this view: "The economy will continue its lightweight repair program with major contributions from tourism, manufacturing and construction and several initiatives are underway by the Government." However, a strong recovery from private sector demand, including consumer spending and investment, is needed to provide momentum for a recovery that brings the economy back to pre-recession growth. "
Manufacturing and other sectors
The manufacturing industry expanded significantly in the 1970s, especially on St. Croix. Most industries rely on the tax concessions and financial benefits they earn from the US territory. An alumina plant processes bauxite until December 2009. The Hovensa refinery produces 495,000 barrels per day (78,700 m 3 /d), and closes in February 2012. Analysts reviewing the economy often point to the closure of the Hovensa oil refinery once the largest private company on the island. This of course affects the local economy, making 2,200 unemployed. In the last year of full refinery operations, the value of exported oil products was $ 12.7 billion. Island exports declined after the closure of the refinery in 2012, from $ 3.339 billion to $ 2.627 billion. However, imports fell as well, from $ 3.056 billion to $ 2.694 billion.
By the end of 2013, the Reserve Bank of New York Research and Statistics Group showed that manufacturing employment fell 50 percent in May 2012, and by 4 percent in November 2012, and that GDP fell 13 percent, "mainly because of an 80 percent drop in exports (most processed oil).) On the other hand, tourism and some other service industries grow in 2013.
The CIA's World Factbook states that by 2013, "the economy remains relatively diversified." Along with the dynamic tourism industry, rum exports, trade and services will be a major source of revenue in the coming years. " A New York-based research group made the following comments by the end of 2013: "Going forward, we note that tropical weather and beautiful beaches will continue to attract tourists, and natural resources augur well for rum production, but the group also added that "it might also be useful to see the physical and human infrastructure built over the years, with an eye to using it for other types of productive economic activities."
The latest report (May 2016) shows that there are an average of 607 manufacturing jobs. In comparison, there are 1,487 natural resource and construction jobs and nearly 11,000 people work in some aspects of agriculture in the first half of fiscal 2016.
Internet and mobile services
With the help of funding from the American Recovery and Reinvestment Act of 2009, the Virgin Islands Next Generation Network began to bring broadband internet access to the region, in an effort to stimulate the technology and business sectors in general. Currently, broadband services are available through wireless and wired. Mobile phone services are also widely available on all four islands from several providers.
Financial challenge
A May 2016 report by Bloomberg expressed concern about the island's debt burden. "In terms of debt burden, on a per capita basis, on the basis of income, it is high," said Marcy Block, a Fitch analyst. The government believes it will be able to replay the loan. In that section it is "due to the way the bonds are structured.Many securities are backed by certain income streams, such as excise taxes associated with the production of rum by Diageo Plc and Cruzan International Inc., direct from the US Treasury to escrow agencies Even tax-backed bonds Gross receipts, which offer documents saying "guaranteed by full conviction and credit and tax power," also gave the trustee a levy. "
Some news media reported the financial crisis in January or February 2017. The overall debt backed by the USVI tax is $ 2 billion on January 23, which is very high considering the moderate population. That translated into a $ 19,000 per capita debt, which was worse than per-capita debt in Puerto Rico that was in a deep financial crisis at the time. A Debtwire analyst writing in Forbes pointed out that no shortage of miracles would prevent a financial collapse.
On February 15, 2017, the GVI was $ 110 million in the current budget (structural deficit). Governor Kenneth Mapp issued an executive order limiting the use of government-owned vehicles, placing a freeze on non-essential recruitment, deferred wage negotiations, and freezing the unimportant trip paid by GVI. Some jobs are excluded from recruitment hiring: civil servant positions whose salaries are paid through federal funds, human service workers, teachers, and those employed by agencies under federal consent decisions such as police and corrective officers. A report from the Government House Government House shows that these steps are necessary "given that cash income flowing into cash is not enough to meet current expenditures".
On Feb. 16, the Finance Commissioner of the Treasury and Executive Director of the Public Finance Authority, Valdamier Collens, said the government had only two days of cash instead of 15 or 16 days in the past few months. The government introduced a bill labeled as a "tax of sin", with plans to introduce or increase taxes. The affected commodities will include rum, tobacco products, beer and sugary drinks, as well as timeshare unit owners and internet purchases. "If we were able to get through the steps investors would see because we were handling our structural deficits it would be a good sign for investors but they would not jump out tomorrow and say, 'Oh, come back to the market,'" Collens said.
A coalition comprising the Chamber of Commerce in the St Croix and St. Thomas districts, USVI Hotels and the Association of Tourism and Resort Development Associations of America issued a joint statement on 14 February 2017 asking Governor Kenneth Mapp to withdraw the tax bill on sin. The group believes that additional taxes will be a "severe blow" for businesses. It recommends an alternative: working "with the private sector to develop ideas already presented to help ease the financial crisis". Mapp's response to the coalition included his understanding of the group's recommended strategy:
"For example, the rooms request that we cut the salaries of all government workers by 30 percent, that we increase the property tax on residential and commercial properties and that we impose additional income taxes on salaries for all workers in the Territory," he said. "Hard recommendation from the Chamber of Commerce to avoid taxing 25 cents on a bottle of beer or 50 cents tax on a bottle of rum. Now it's time to put our people first."
Economic summary
The CIA study concluded that the islands accommodate nearly 3 million tourists per year (estimated by 2014), mostly from visiting cruises. However, a more recent May 2016 forecast for the number of arrivals by the VI Economic Research Bureau totals 1,208,295 by cruises and 403,876 people by air. Not all the latter will be tourists, of course. The government budget in 2013 consists of $ 1,223 billion in revenue and $ 1.551 billion in expenditures. The $ 241.4 million federal and grant program contributes 19.7% of the region's total revenue in 2013.
The following data is compiled from a report published by the CIA and the Economic Research Bureau VI. All information that exists before the date of the financial crisis of early 2017 may have an effect on some economic categories.
* Gross Domestic Product (official exchange rate): $ 5.075 billion (2013)
* PDB - per kapita (PPP): $ 36,100 (2013 est.) $ 39,300 (2012 est.) $ 40,500 (2011 est.)
* GDP - Real Growth Rate: -5.4% (2013 est.) -13.8% (estimated 2012) -7.5% (estimated 2011)
* GDP - composition, by sector of origin: agriculture: 2% industry: 20% service: 78% (2012 estimate)
* Public debt: 45.9% of GDP (2014)
* Unemployment rate: 13% (2014) 11.5% (first half of 2016)
* Civilian workforce (2016) 42,752 people
* Private sector jobs (2016) 71 percent of the total
* Average salary (2016) $ 39,258 (private sector, $ 34,088; public sector $ 52,572)
* Rum Delivery in six months (2016) 8,136.6 gallons of evidence
* The average value of sold homes (2015) $ 508,811
References
External links
- US Virgin Islands Labor Department
- YouthNet
Source of the article : Wikipedia
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