Economy of Anguilla

This article is an overview of the economy of Anguilla.

Anguilla has few natural resources, and the economy depends heavily on luxury tourism, offshore banking, lobster fishing, and remittances from emigrants. The economy, and especially the tourism sector, suffered a setback in late 1995 due to the effects of Hurricane Luis in September but recovered in 1996. Increased activity in the tourism industry, which has spurred the growth of the construction sector, has contributed to economic growth. Anguillan officials have put substantial effort into developing the offshore financial sector, which is small, but growing. A comprehensive package of financial services legislation was enacted in late 1994. In the medium term, prospects for the economy will depend largely on the tourism sector and, therefore, on revived income growth in the industrialized nations as well as on favorable weather conditions.

Anguilla's economy fell with the fastest speed in the world due to the 2008 world financial crisis. 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. A 3.3% increase in GDP is expected for 2012 following a period of rapid expansion (2004-2007) and contraction (2008-2010). Weak global demand for tourism and oil price volatility are downside risks to economic growth moving forward.