U.S. Virgin Islands Having the Best of Times in Economic Expansion

The U.S. Virgin Islands´ economy is in the midst of an economic expansion, according to the Bureau of Economic Research (BER). The good news is the result of record increase in private sector activity in construction and financial services, public sector investment in major public works and economic development projects, and record increase in tourism.

The U.S.V.I. Gross Territorial Product continues to grow each year, and is expected to increase 3.2 percent in 2005.

“The economic expansion is the result of hard work and sacrifices on the part of the people of the Virgin Islands,” said Governor Charles W. Turnbull. “We put in place economic reforms that spurred private and public sector growth. We maintained a balanced budget and created a stable and accountable economy. Our goal is to create higher paying private sector jobs, better and more affordable housing, and improved education, health care and public safety.”

Public and private sector development will top one billion in 2006. Projects under construction include the $150-million Yacht Haven Hotel and Marina in St. Thomas, which will be finished in 2006 and is expected to add 120 new jobs, as well as construction of the $63-million Sapphire Beach Recreational Center and

the $40-million Marriott timeshare development in St. Thomas.

Tourism is also at record levels, with significant increases in both air and cruise ship passengers. For the first three quarters of the fiscal year 2005, total visitor arrivals reached 2.24 million, up nearly five percent from the same period in 2004. The BER projects visitor arrivals to peak at 2.7 million by the end of fiscal year 2005 and reach 2.8 million in 2006.

The territory´s civilian unemployment rate fell to 7.4 percent in the first nine months of this year, a 22 percent decline from 2003. The rate for St. Croix is currently 8.6 percent, down 33 percent from 2003.