The Strategic Policy and Planning Department (SPPD) is pleased to release the 2014 National Accounts Statistics report and announces that the economy of the Turks and Caicos Islands is forecasted to experience moderate growth over the next few years.
The real Gross Domestic Product (GDP) is projected at approximately $616 million for 2015, representing a forecasted growth of 5.94% when compared to the $582.3 million in 2014. Future projections show that economic growth is expected to be strengthened by 4.4 percent in 2016, 4.3 percent in 2017 and 5.3 percent in 2018.
“This projected growth will be driven mainly by strong performance in the tourism sector and projected private sector investments worth more than $400 million dollars” stated Acting Director of SPPD, Mr. Shirlen Forbes.
The overall growth forecast is underpinned by further growth in stay over tourism and real estate with spillovers into the wholesale and retail sectors. However, these projections for the islands are hinged on the government of the Turks and Caicos Islands continuing its focus on short-run macroeconomic management which will complement its long-run development policy initiatives. This stable macro-economic environment should involve maintaining fiscal surpluses and the government continuing to exercise the fiscal prudence which it has exercised over the last few years. It also involves maintaining low levels of internal and external debt and low rates of inflation which is currently estimated at around 2.3 percent.
The Hotel and Restaurants sector is expected to grow at an average of 5 percent over the next three years and will contribute significantly to the estimated growth in the overall GDP. The construction sector is forecasted to decline slightly by 3.5 percent in 2015 but should experience continuous growth going forward over the next three years. This sector will be propelled by foreign direct investment in large-scale tourism related projects as well as revitalization of stalled projects and other new private and public sector projects.
Acting Director Mr. Shirlen Forbes further reminds the public that these are forecasted growth and “one must always be mindful that there are a number of downside risk such as global health concerns, geopolitical tensions, adverse weather conditions and unavailability of external financing for private sectors projects which can hamper the TCI achieving projected growth targets.”
SPPD wishes to thank the business community, public corporations, government agencies, and everyone, who has contributed, in one way or another, for the cooperation received in the provision of the necessary data. The department wishes to advise the businesses community with outstanding questionnaires to be submitted, to please submit the questionnaires, as they remain integral to the updating of the estimates. The Department also thanks the public for their patience as we try to make the necessary data available.
