Real gross domestic product for the U.S. Virgin Islands decreased 1.3 percent in 2022 after increasing 3.7 percent in 2021, according to statistics released today by the U.S. Bureau of Economic Analysis.
GDP for 2022
The decrease in real GDP reflected declines in exports, private fixed investment, government spending, and personal consumption expenditures that were partly offset by an increase in inventory investment. Imports, a subtraction item in the calculation of GDP, decreased.
Exports of goods and services decreased 18.9 percent, reflecting a decrease in exports of goods that was partly offset by an increase in exports of services. The decline in exports of goods primarily reflected decreases in exports of crude oil and petroleum products. The increase in exports of services primarily reflected growth in spending by visitors. Total visitor arrivals increased 69.7 percent in 2022 according to information published by the USVI government.
Private fixed investment decreased 18.6 percent, reflecting declines in spending on equipment and structures. Investment spending continued to decline after being elevated in prior years to support capital improvement projects including the restart of the oil refinery on St. Croix.
Government spending decreased 4.4 percent, reflecting declines in territorial and federal government spending. Territorial government spending decreased 2.6 percent, reflecting a decline in construction activity. Federal government spending continued to decline in 2022 after being elevated in prior years to support reconstruction activities following the 2017 hurricanes.
Personal consumption expenditures decreased 1.0 percent, reflecting an increase in consumer prices that outpaced the increase in current-dollar PCE.
Private inventory investment increased reflecting a smaller decline in private inventories, due to a smaller drawdown in crude oil and petroleum product inventories compared to 2021.
GDP by industry and compensation by industry for 2021
In 2021, real GDP increased 3.7 percent. The newly available GDP by industry data, which are released on a 1-year lag, reveal that the private sector was the source of growth in real GDP in 2021.
The increase in the private sector reflected growth in services-producing industries that was partly offset by a decline in goods-producing industries. Services-producing industries increased 10.9 percent. The largest source of growth within services-producing industries was accommodation and food services, reflecting an increase in visitor spending. Goods-producing industries decreased 13.8 percent, reflecting a decline in construction activity.
The government sector decreased 5.4 percent, primarily reflecting operating losses of government utilities and a decrease in territorial government employment.
Total compensation decreased from $2,546 million in 2020 to $2,306 million in 2021. The $240 million decrease reflected a decrease in private-sector compensation. The largest contributor to the decrease was goods-producing industries.
These statistics were developed under the Statistical Improvement Program funded by the Office of Insular Affairs of the U.S. Department of the Interior.
For more information, read the full release.