Economy of Anguilla

The economy of Anguilla, which has few natural resources, depends heavily on luxury tourism, offshore banking, lobster fishing, and remittances from emigrants. Due to its small size and reliance on tourism and foreign direct investment, Anguilla is vulnerable to external economic conditions in the United States and Europe. Therefore, economic growth in Anguilla can be very volatile.

Economy of Anguilla
Flag of Anguilla
CurrencyEast Caribbean dollar (XCD)
1 US$ = 2.7 XCD (2014)
1 April - 31 March
Trade organisations
OECS, CARICOM (associate)
Statistics
GDP-8.5% (2009 est.)
GDP per capita
$12,200 (2008 est.)
GDP by sector
agriculture: (2.6%) industry: (24.4%) services: (73%) (2014 est.)
3.1% (2014 est.)
Population below poverty line
23% (2002 est.)
Labour force
6,049 (2001 est.)
Labour force by occupation
agriculture: 4%, industry: 21%, services: 75% (2000 est.)
Unemployment8% (2002 est.)
Main industries
tourism, boat building, offshore financial services
External
Exports$11.7 million (2014 est.) [1]
Export goods
lobster, fish, livestock, salt, concrete blocks, rum
Main export partners
 United Kingdom N/A%
 United States N/A%
 Puerto Rico N/A%
 Saint Martin N/A%
Imports$138.3 million (2014 est.)
Import goods
fuels, foodstuffs, manufactures, chemicals, trucks, textiles
Main import partners
 United States N/A%
 Puerto Rico N/A%
 United Kingdom N/A%
Public finances
$8.8 million (1998)
Economic aid$9  million (2004)

All values, unless otherwise stated, are in US dollars.

History

In the 19th century, Anguilla's major product was salt produced by evaporation on the shores of the island's lakes, which was exported to the United States.[2][3] Sugar, cotton, corn, and tobacco were also grown.[3] By the beginning of World War I, the island had been almost entirely deforested by charcoal-burners. Most of the land was held by black sustenance farmers producing sweet potatoes, peas, beans, and corn and rearing sheep and goats. Salt continued to be exported to nearby Saint Thomas, along with phosphate of lime and cattle.[4]

Modern Anguilla has focused its development on tourism, its related construction industry, and offshore finance. The first comprehensive financial services legislation was enacted in late 1994. The island was damaged by Hurricane Luis in September, 1995, and again during Hurricane Lenny in 2000.[5]

Anguilla's economy expanded rapidly from 2004 to 2007, before falling with the fastest speed in the world due to the 2008 financial crisis. Recovery began in 2010 and a 3.3% increase in GDP was projected for 2012.[6]

Industry

Major industries in Anguilla include tourism, boat building, and offshore financial services. In 1997 there was an industrial production growth rate of 3.1%.

42.6 GWh of electricity are consumed, produced entirely by fossil fuel.

Agricultural products include small quantities of tobacco, vegetables, and cattle raising.

In 2011 Anguilla became the fifth-largest jurisdiction for captive insurance, behind Bermuda, Cayman, Vermont and Guernsey.[7] The captive industry plays an ever-increasing and important part of Anguilla's financial services industry. Captive management firms, including Capstone Associated Services, have staffed offices in Anguilla in order to service the fast-growing captive insurance industry.

Notes

  1. ^ "CIA – The World Factbook". Cia.gov. Retrieved 2015-06-30.
  2. ^ Martin (1839).
  3. ^ a b EB (1878).
  4. ^ EB (1911).
  5. ^ South America, Central America and the Caribbean 2003 (11 ed.). Routledge. 2002. p. 52. ISBN 978-1-85743-138-4.
  6. ^ http://www3.ambest.com/ratings/cr/reports/Anguilla.pdf
  7. ^ 4. Property & Casualty 360, May 3, 2012, http://www.propertycasualty360.com/2012/05/03/831b-captives-small-option-is-increasingly-big-id

References

  • Martin, Robert Montgomery (1839), "Chapter XIV.—Anguilla.", Statistics of the Colonies of the British Empire in the West Indies, South America, North America, Asia, Austral-Asia, Africa, and Europe; comprising the Area, Agriculture, Commerce, Manufactures, Shipping, Custom Duties, Population, Education, Religion, Crime, Government, Finances, Laws, Military Defence, Cultivated and Waste Lands, Emigration, Rates of Wages, Prices of Provisions, Banks, Coins, Staple Products, Stock, Moveable and Immoveable Property, Public Companies, &c. of Each Colony; with the Charters and the Engraved Seals. From the Official Records of the Colonial Office., London: William H. Allen & Co., p. 102
  • Wikisource Baynes, T.S., ed. (1878), "Anguilla" , Encyclopædia Britannica, 2 (9th ed.), New York: Charles Scribner's Sons, pp. 46–47
  • Wikisource Chisholm, Hugh, ed. (1911), "Anguilla" , Encyclopædia Britannica, 2 (11th ed.), Cambridge University Press, pp. 42–43

Attribution:  This article incorporates public domain material from the CIA World Factbook website https://www.cia.gov/library/publications/the-world-factbook/index.html.

Anguilla

Anguilla ( ann-GWIL-ə) is a British overseas territory in the Caribbean. It is one of the most northerly of the Leeward Islands in the Lesser Antilles, lying east of Puerto Rico and the Virgin Islands and directly north of Saint Martin. The territory consists of the main island of Anguilla, approximately 16 miles (26 km) long by 3 miles (4.8 km) wide at its widest point, together with a number of much smaller islands and cays with no permanent population. The island's capital is The Valley. The total land area of the territory is 35 square miles (91 km2), with a population of approximately 14,764 (2016 estimate).

Anguilla has become a popular tax haven, having no capital gains, estate, profit, sales, or corporate taxes. In April 2011, faced with a mounting deficit, it introduced a 3% "Interim Stabilisation Levy", Anguilla's first form of income tax. Anguilla also has a 0.75% property tax.

Anguilla Financial Services Commission

The Anguillan Financial Services Commission is an autonomous regulatory authority responsible for the regulation, supervision and inspection of all financial services in and from within Anguilla, including insurance, banking, trustee business, company management, mutual funds business as well as the registration of companies, limited partnerships, intellectual property and ships.The Commission was established by the enactment of the Financial Services Commission Act on 26 November 2003 and it commenced operations on 2 February 2004.The Commission now oversees all regulatory responsibilities previously handled by the government through the Financial Services Department. The Commission was established in 2001 pursuant to the Financial Services Commission Act (Cap F.28) to try to protect the independence of the regulation of financial services. The establishment of the Commission was also part of certain international commitments by Anguilla to play its part in the fight against cross border white collar crime while safeguarding the privacy and confidentiality of legitimate business transactions.

The Commission has also been tasked with new responsibilities including promoting public understanding of the financial system and its products, policing the perimeter of regulated activity, reducing financial crime and preventing market abuse.

The Chair of the Financial Services Commission is Helen Hatton. Mrs Hatton was a former financial regulator in Jersey, and is Fellow of the Institute of Advanced Legal Studies and a Freeman of the Worshipful Company of International Bankers.

Anguillan bankruptcy law

Anguillan bankruptcy law regulates the position of individuals and companies who are unable to meet their financial obligations.

Bankruptcy of individuals is usually referred to as "personal bankruptcy" in Anguilla, whereas the bankruptcy of corporations is referred to as "corporate insolvency". The legislation largely deals with both separately, although there are some common provisions.

Anguillan company law

Anguillan company law is primarily codified in three principal statutes:

the International Business Companies Act (Cap I.20);

the Companies Act (Cap C.65); and

the Limited Liability Companies Act (Cap L.65).The Companies Act is generally reserved for companies which engaged in business physically in Anguilla, and companies formed under it are generally referred to as either "CACs" (an acronym for Companies Act Companies) or "ABCs" (an acronym for Anguillan Business Company). The other two statutes relate to the incorporation of non-resident companies as part of the Territory's financial services industry. Companies incorporated under International Business Companies Act are called International Business Companies (or, more usually, "IBCs"). IBCs represent the largest number of companies in Anguilla. Companies incorporated under Limited Liability Companies Act are called Limited Liability Companies, and are also commonly referred to by their three-letter acronym, "LLCs".

Arbitration in Anguilla

Arbitration in Anguilla is regulated principally by the Arbitration Act (Cap A.105).

Eastern Caribbean Central Bank

The Eastern Caribbean Central Bank (ECCB) is the central bank for the Eastern Caribbean dollar and is the monetary authority for the members of the Organisation of Eastern Caribbean States (OECS), with the exception of the British Virgin Islands and Martinique. Two of its core mandates are to maintain price and financial sector stability, by acting as a stabilizer and safe-guard of the banking system in the Eastern Caribbean Economic and Currency Union (OECS/ECCU.) It was founded in October 1983 with the goal of maintaining the stability and integrity of the subregion's currency and banking system in order to facilitate the balanced growth and development of its member states.

The bank is headquartered in Basseterre, St. Kitts, and is currently overseen by Mr. Timothy Antoine, the Bank Governor. Prior to assuming his post in February 2016, the bank was overseen by the late Sir K. Dwight Venner. In early 2015, the bank announced plans to phase out the production of the 1 and 2 cent pieces. The date was finalised as July 1, 2015. When a motive was sought, it was stated that it takes about six cents to make one cent pieces and about eight cents to make a 2 cent piece.

Geography of Anguilla

Anguilla is an island in the Leeward Islands, which lies between the Caribbean Sea in the west and the open Atlantic Ocean in the east. It is a long, flat, dry/wet, scrub-covered coral island, south and east of Puerto Rico and north of the Windward chain. One of the Renaissance Islands, it is separated from the British Virgin Islands by the Anegada Passage. The island has no significant elevations with its terrain consisting entirely of beaches, dunes, and low limestone bluffs.

Index of Anguilla-related articles

The following is an alphabetical list of topics related to the British Overseas Territory of Anguilla.

List of Caribbean-related topics

This is a list of topics related to the Caribbean region

Outline of Anguilla

The following outline is provided as an overview of and topical guide to Anguilla:

Anguilla – one of the most northerly of the Leeward Islands in the Lesser Antilles, lying east of Puerto Rico and the Virgin Islands and directly north of Saint Martin. Anguilla has become a popular tax haven, having no capital gains, estate, profit or other forms of direct taxation on either individuals or corporations.

Greater Antilles
Leeward Antilles
Leeward Islands
Windward Islands
Other islands
Continental coasts
Economies of the dependencies of European Union states European Union
Denmark
France
Netherlands
United Kingdom

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