The Anguilla House of Assembly, and by extension the people of the island, have been told that Anguilla is now climbing out of the global economic recession and experiencing steady growth.
This was alluded to in the House of Assembly on Monday, by Chief Minister and Minister of Finance, Mr. Victor Banks, during his presentation of the 2017 Budget Address. He was then giving an economic and fiscal review of the situation in Anguilla from 2015.
“I am pleased to say that we in Anguilla experienced another year of progress, another year of steady growth,” he stated. “It was another year of Anguilla rising, as we, like the rest of the world, continue on our road to recovery.
“Last year, Mr. Speaker, our economy grew in real terms by a modest 2.81 percent. This is a respectable and sustainable level of growth for our small nation. This 2.81 percent compounds growth of 5.6 percent of the previous year and 0.5 percent the year before that – growth compounding growth for three years strong as we continue to cement our climb out of the global economic recession. Gross Domestic Product, as a measure of economic output, was EC$863.32 million in 2011. Although we are not yet back to our peak level of economic output, which was EC$959.25 million in 2007, we are seeing the requisite growth in our critical sectors that will allow us to surpass that peak through controlled, sustained growth.”
Mr. Banks identified the most significant sectors as having been hotels and restaurants;
renting and business activities, financial intermediation, transport, storage and communications, public administration and compulsory social security.
The Chief Minister and Minister of Finance continued: ”Tourism continues to drive growth and gainfully engage our labour force. The hotel and restaurant sector grew by 2.24 percent and contributed EC$145.52 million to our economy in 2015. The expansion of tourism was as a result of a 5.25 percent increase in visitor arrivals over 2014. In 2015 we saw increases in both the stay-over and day-tripper categories of visitors contributing EC$344.62 million to our local economy.
“Mr. Speaker, our construction sector – while only 36 percent of its size in 2008 – still remains a significant driver of growth and employment. In 2015, the construction sector grew by a strong 7.6 percent following exceptionally high growth of 38.1 percent in the previous year. The slowing of growth relative to 2014 was expected, however, as many of the major projects did their ‘heavy lifting’ in the previous year. Opportunely the continued construction at Zemi Beach, Manoah, the Reef by CuisinArt and Solaire as well as public sector investment projects, kept the construction sector in Anguilla not merely afloat but expanding in 2015. This is significant as we recognise that in order for our recovery to continue, we must ensure that construction activity continues in our island.”
Mr. Banks further said: “Even beyond the growth in those pivotal sectors, it is heartening to report that our economy recorded an encouraging expansion in all of our other major economic sectors: real estate, renting & business activities: 2.25 percent growth; transport, storage & communications: 4.57 percent growth; Public Administration, Defence & Compulsory Social Security: 4.18 percent; Financial Intermediation: 4.79 percent growth. This explains the overall 2.81 percent expansion experienced in our economy in 2015.
“In 2016, we anticipate another year of compounding growth for Anguilla with real growth expected to be 4.30 percent. Real growth gives us a real reason to celebrate and realign as we take Anguilla forward.”
