About St Vincent :: St Vincent Economy :: Country profile

St Vincent - The Economy

Whilst the Caribbean state of St Vincent and the Grenadines (SVG) is probably best known as a hideaway for the rich and famous, the former British colony is now emerging as a well governed and regulated financial jurisdiction to rival the more prominent offshore finance centres in the region.

In the past, the country's economy was based on income from sugar and bananas, although tourism has since superseded agriculture as St Vincent's biggest earner. Economic growth has been restricted by a combination of events such as climatic problems and the need to remodel the financial services sector to appease the OECD and FATF (Financial Action Task Force) which has become a high priority for the government. Accordingly, an ambitious programme of policy reforms designed to strengthen the public finances, achieve higher growth, lower unemployment and reduce poverty is underway.

Banking, trusts, insurance and mutual funds form the cornerstone of the finance industry although the registration of International Business Companies has also become a strong growth area for SVG. According to the International Financial Services Authority (IFSA), by the end of April 2004, some 357 new IBCs had registered in the country, compared to 194 during 2003, representing growth of 84%. In total there are around 6,300 registered IBCs.

In terms of communications, the UK telecommunications firm Cable and Wireless provides most of the telephone services in the country, with fax, cable and internet services also in wide use. Mobile phone services are provided by the Caribbean Cellular Company although the opening up of this market by the government has recently seen two new entrants.

So, with its location somewhat off the beaten track and its miles of unspoilt sandy beaches, St Vincent may be an attractive proposition to those wishing to buy a holiday home in the Caribbean away from the tourist throng of its neighbouring Islands. And besides the laid back lifestyle, the country is also an interesting and nowadays well-regulated base for the expatriate or international investor.

For further information on Buccament Bay Resort, please contact us.