The
Development Planning Unit
Government of the British Virgin Islands

Quarterly Bulletin
FIRST Quarter 2000

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Volume (4) No. (1) April , 2000

Main Economic Indicators
Quarterly Bulletin Issued by the Development Planning Unit

1. Inflation Rates


The Consumer Price Index (CPI) at the end the first quarter of 2000 (March), stood at 122.3 whereas the previous month (February) it was at a 120.3 index level. A quarter earlier (December 1999) the index stood at 120.2 and a year earlier (March 1999) the index stood at 120.1.

While the subgroups Housing and Miscellaneous remained unchanged at the index levels of 130.0 and 122.9 respectively, the subgroups Food, Beverage & Tobacco increased by 0.18 percent due to the higher prices of ground beef, salt, fruits and vegetables, tea bags and sandwiches.

The point-to-point monthly, quarterly, half-yearly and annual rates of inflation stood at 1.66, 1.75 and 1.83 percent respectively.

Annual Inflation Rate

Current Account: Major Components ($'000)

4. Money Indicators

The performance of the Money and Banking sub-sector was mixed as total deposits declined by 5.0% as a result of significant negative changes in the level of non-domestic certificates of deposits, a 1.0% fall in loans and advances, a steady average prime interest rate and a 2.3% jump in total assets and liabilities of the commercial/development banks.

A comparison of the review quarter with the first quarter 1999 reveals growths of 9.1% and 18.4 in demand deposits and savings deposits, respectively. Continuing with the same quarterly comparison shows certificates of deposits falling 2.0%, with the domestic share expanding 9.7% and the non-domestic share contracting 14.7%. Total deposits increased 4.3% to $955.8 million while loans/advances outstanding also expanded 14.7% to $500.1 million. Total assets and liabilities of commercial/development banks jumped 9.3% from $949.3 million.

Comparing the review quarter to the fourth quarter of 1999 shows a fall of 3.2%, a rise of 18.6% and an expansion of 19.6% in demand deposits, savings deposits and certificates of deposits, respectively. Interestingly both total deposits and non-domestic certificates of deposits fell 5.0% and 28.6%, respectively but domestic certificates of deposits expanded 5.0%. Loans/Advances increased by 1.0% while total assets of the liabilities of the banks expanded 2.3% to $1.04 billion.

Indices of Deposits and Loans

5. General Business Indicators: Trade Licences Paid


During the past decade the application for and the approval of trade licences have mirrored the extraordinary performance of the economy and the development of the country in general.

The first quarter of 2000 saw a 30.6% rise in approval of new licences bringing that figure to 6.7% above the like quarter of 1998 but 25.4% below 1999 like quarter level. On the other hand, the number of trade licences operating rose 1.8% to 3,679, in the review period, up 24.0% and 10.9% over the first quarters of 1998 and 1999, respectively.

The index of trade licences operating now stands at 197 up from 158 and 177 at the end of the like review periods of 1998 and 1999, respectively.

Quarterly Issue of Trade Licences

6. General Business Indicators: Companies Incorporated

As a general business indicator, the number of businesses incorporated is not the best, but it is one of the most available indicators. The number of companies incorporated tells us something about how business are being organized in terms of their legal structures.


For the period under review we see a significant drop in the number of companies incorporated and consequently a significant fall off in the index from 193 to 162. Nominally, the number of companies incorporated declined to 47 from 56.

Company Registration

7. Central Government


Compared to the same quarter of 1999, Central Government revenue rose 20.8% to $29.95m from $26.95m while total expenditure expanded 19.3% to $36.87m. A further comparison to the like quarter of 1998 reveals an 11.1% jump in revenue and a 29.1% rise in total expenditure.

Decomposing total expenditure shows that during the review period current expenditure rose 19.9% and 12.8%, compared to the levels seen in the like quarters of 1998 and 1999, respectively. Capital expenditure rose 86.3% and 47.4% compared with the like quarters of 1998 and 1999, respectively.

The share of expenditure on current affairs fell to 76.6% during the review period as against 81.1% and 83.6% seen in the first quarters of 1998 and 1999.

Central Government Spending









8. Energy: Electricity and Water

Inspite of major difficulties in the supply of both electricity and water associated in part with production difficulties, the production of both water and electricity increased during the review period.

Electricity generated rose 3.6% to 26,112 kwhrs while water produced increased 1.9% to 80,979,000 IG compared to the previous quarter. Comparisons with the first quarter 1999 show increases of 6.8% and 11.3% for electricity produced and water supplied, respectively.

Consumption of electricity and water rose 4.1% and 8.5% respectively, in previous quarter compared to the review period. However, comparisons with first quarter 1999 revealed increases of 9.1% and 10.9%, respectively for electricity and water consumed.