The economy in the Virgin Islands contracted in 2020, after seven consecutive years of growth. With border closures and strict lockdown measures taken to contain the spread of COVID-19, activity in most sectors were negatively impacted contributing to a rise in unemployment. Fiscal balances deteriorated and debt levels ticked up, but public finances remained compliant with key borrowing and fiscal ratios under the Virgin Island’s Protocols for Effective Financial Management. The banking sector remained well capitalised. The external current account deficit widened, imports dropped, and export income fell. The medium-term outlook is positive but remains uncertain with several downside risks.