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Economy of the United States Virgin Islands

 

Economy of the United States Virgin Islands

This article is on the economy of the United States Virgin Islands. This territory uses US currency and the fiscal year is 1 October - 30 September.

Contents

  • Economic history 1
    • Tourism 1.1
    • Manufacturing 1.2
  • Economy overview 2
  • Job market 3
    • YouthNet 3.1
  • References 4
  • External links 5

Economic history

During the slave days, the islands cultivated cash crops to earn money. In 1848, the governor granted the slaves emancipation, which was against the wishes of Danish Crown and devastated the economy of the islands. In 1917, a treaty was concluded in which the United States purchased the islands for $25,000,000.

The economy was boosted in the 1970s due to tourism and manufacturing.

The islands also receive cross-over subsidies, which generated approximately $100 million for the Virgin Islands in 2008.[1]

With the help of funding from the American Recovery and Reinvestment Act of 2009, the Virgin Islands Next Generation Network (a government-owned subsidiary)[2] is bringing broadband internet access to the territory, in an effort to stimulate the technology sector and business generally.

Tourism

The tourism industry is the main industry, generating 80% of GDP and employment. The majority of tourists are from the USA and the most common way to get there is by sea. The tourism industry mostly employs those who have migrated to the U.S. Virgin Islands. In 2005, a record of 2.6 million visitors visited.

Manufacturing

Manufacturing industries developed significantly in the 1970s, especially on St. Croix island. Most industries depend of tax concessions and the financial advantages they derive from being a U.S. territory. An alumina factory processed bauxite until December 2009. The Hovensa oil refinery produced 495,000 barrels per day (78,700 m3/d), and closed down in February 2012.

Economy overview

Budget:

revenues: $837 million
expenditures: $837 million (FY08/09)

Oil

production: 16,870 bbl/day (2009 est.)
consumption: 16,870 bbl/day (2009 est.)
exports: 388,000 bbl/day (2007 est.)
imports: 480,600 bbl/day (2007 est.)

Job market

According to the Virgin Islands' Department of Labor, the size of the local workforce is almost 50,000 people. In 2009, it was reported that the unemployment rate was 7.8%.[3] Hovensa is also a large-scale employer after the government of the Virgin Islands.

YouthNet

Virgin Islands's Department of Labor in collaboration with BIZVI, launched a program called YouthNet, to help at-risk youth to get back on their career track.[4][5]

References

  1. ^ Matthew Murray, Rum Makers' Conflict Boiling Over, Roll Call (March 1, 2010), citing the Congressional Research Service, available at http://www.rollcall.com/issues/55_95/lobbying/43633-1.html
  2. ^ http://www.vingn.com/
  3. ^ http://post.career.vi/2010/04/virgin-islands-unemployment-rate
  4. ^ http://post.career.vi/2010/04/youthnet-virgin-islands-department-of-labor-introduces-a-revolutionary-program
  5. ^ http://stcroixsource.com/content/news/local-news/2010/04/08/youth-council-exploring-ways-keep-students-track

External links

  • US Virgin Islands Department of Labor
  • YouthNet
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