Economic growth in the British Virgin Islands (BVI) rebounded in 2018. Following damage inflicted by Hurricanes Irma and Maria in2017, there was increased construction activity related to recovery. Tourism, activity also increased, although not to pre˗hurricane levels. Growth in company incorporations remained robust, contributing to improved financial services’ performance.
Public sector finances improved; but increased spending will be necessary to complete the post-hurricane recovery. Financing the Recovery and Development Plan (RDP) is expected to place additional pressures on fiscal and debt sustainability. Despite progress made in finalising the RDP and the establishment of the Recovery and Development Agency (RDA) in 2018, capacity constraints have delayed the start of the projects. A fully operational RDA, supported by an appropriate financing and debt strategy, which takes into account a potential guarantee from the United Kingdom Government (UKG), could help advance the reconstruction efforts.