Editing United States Virgin Islands (section)

==Economy==
{{Main|Economy of the United States Virgin Islands}}
[[File:MagensBay.jpg|thumb|[[Magens Bay]], [[Saint Thomas, U.S. Virgin Islands|St. Thomas]]]]

Tourism is the Islands' biggest industry; with 2.5–3 million annual visitors, the sector is responsible for about 60% of the GDP.<ref name="WorldFactbook" /><ref name="VI Bureau of Economic Research-2016">{{Cite web |last=<!--Staff writer(s); no by-line.--> |date=May 15, 2016 |title=U.S. Virgin Islands Economic Review – VI |url=http://www.usviber.org/Economic%20Review%20May%202016.pdf |url-status=dead |archive-url=https://web.archive.org/web/20161130055225/http://usviber.org/Economic%20Review%20May%202016.pdf |archive-date=November 30, 2016 |access-date=February 15, 2017 |website=VI Bureau of Economic Research }}</ref> Other major sectors are the public sector, some limited agriculture, and small scale manufacturing, most notably [[rum]] production.<ref name="WorldFactbook" /><ref name="Britannica" />

A 2012 economic report from the U.S. Census Bureau indicated a total of 2,414 business establishments generating $6.8 billion in sales, employing 32,465 people and paying $1.1 billion in payroll per year. Between 2007 and 2012, sales declined by $12.6 billion, or 64.9 percent. (In 2007, total sales were $19.5 billion and the number employed was 35,300.)<ref>{{Cite web |last=<!--Not stated--> |date=July 15, 2014 |title=Economic Census Shows the U.S. Virgin Islands Generated $6.8 Billion in Sales in 2012 |url=https://www.census.gov/newsroom/press-releases/2014/cb14-132.html |url-status=live |archive-url=https://web.archive.org/web/20170222054126/http://www.census.gov/newsroom/press-releases/2014/cb14-132.html |archive-date=February 22, 2017 |access-date=February 18, 2017 |website=US Census |publisher=Department of Commerce}}</ref>

According to a report on the first half of 2016 by the VI Bureau of Economic Research, the unemployment rate was 11.5 percent.<ref>{{Cite web |title=UNEMPLOYMENT RATES - U.S. Virgin Islands |url=http://www.usviber.org/wp-content/uploads/2016/11/UN17.pdf |access-date=January 24, 2021 |publisher=Bureau of Economic Research-United States Virgin Islands |archive-date=May 22, 2022 |archive-url=https://web.archive.org/web/20220522125119/http://www.usviber.org/wp-content/uploads/2016/11/UN17.pdf |url-status=dead }}</ref> In May 2016 the islands' Bureau of Economic Research indicated that there were 37,613 non-agricultural wage and salary jobs in the islands. This report states that the "leisure and hospitality sector" employed an average of 7,333 people. The retail trade sector, which also serves many tourists, averaged another 5,913 jobs. Other categories which also include some tourism jobs include arts and entertainment (792 jobs), accommodation and food (6,541 jobs), accommodation (3,755 jobs), and food services and drink (2,766 jobs). A large percentage of the 37,613 non-farm workers are employed in dealing with tourists. Serving the local population is also part of the role of these sectors.<ref name="VI Bureau of Economic Research-2016"/>

In a May 2016 report, some 11,000 people were categorized as being involved in some aspect of agriculture in the first half of 2016, but this category makes up a small part of the total economy. At that time, there were approximately 607 manufacturing jobs and 1,487 natural resource and construction jobs. The single largest employer was the government.<ref name="VI Bureau of Economic Research-2016"/> In mid-February 2017, the USVI was facing a financial crisis due to a very high debt level of $2 billion and a structural budget deficit of $110 million.<ref name="Baribeau">{{Cite web |last=Baribeau |first=Simone |date=January 23, 2017 |title=United States Virgin Islands Risks Capsizing Under Weight Of Debt |url=https://www.forbes.com/sites/debtwire/2017/01/23/united-states-virgin-islands-risks-capsizing-under-weight-of-debt/#570913e73673 |url-status=live |archive-url=https://web.archive.org/web/20170217071218/http://www.forbes.com/sites/debtwire/2017/01/23/united-states-virgin-islands-risks-capsizing-under-weight-of-debt/#570913e73673 |archive-date=February 17, 2017 |access-date=February 15, 2017 |website=[[Forbes]] |quote=How far behind is the United States Virgin Islands (USVI) from facing the same sort of financial crisis as Puerto Rico? Not very.}}</ref><ref>{{Cite web |last=Gilbert |first=Ernice |date=February 16, 2017 |title=Government Has Two Days Cash on Hand Left, Finance Commissioner Reveals |url=http://viconsortium.com/business/financial-crisis-mapp-executive-order-suspends-hiring-travel-wage-negotiations-and-limits-use-of-govt-vehicles/ |url-status=dead |archive-url=https://web.archive.org/web/20170216143052/http://viconsortium.com/business/financial-crisis-mapp-executive-order-suspends-hiring-travel-wage-negotiations-and-limits-use-of-govt-vehicles/ |archive-date=February 16, 2017 |access-date=February 16, 2017 |website=VI Consortium }}</ref> Since January 2017, the U.S. Virgin Islands government has been unable to raise financing from the [[bond market]] at favorable interest rates, and as of June 2019 have not issued any new bonds since then.<ref>{{Cite web |title=U.S. TERRITORIES Public Debt Outlook |url=https://www.gao.gov/assets/710/700079.pdf |url-status=live |archive-url=https://web.archive.org/web/20191013004147/https://www.gao.gov//assets/710/700079.pdf |archive-date=October 13, 2019 |access-date=25 October 2019 |publisher=US GAO}}</ref>

===Personal income===
The median income for a household in the territory was $40,408, and the median income for a family was $52,000 according to the 2020 census.<ref>{{Cite web   |title=2020 Island Areas Censuses Data on Demographic, Social, Economic and Housing Characteristics Now Available for the U.S. Virgin Islands |url=https://www.census.gov/newsroom/press-releases/2022/2020-island-areas-us-virgin-islands.html |access-date=2022-10-26 |website=Census.gov |archive-date=October 26, 2022 |archive-url=https://web.archive.org/web/20221026002334/https://www.census.gov/newsroom/press-releases/2022/2020-island-areas-us-virgin-islands.html |url-status=live }}</ref> Males had a median income of $41,747 versus $37,052 for females. The per capita income for the territory was $26,897. The average private sector salary was $34,088 and the average public sector salary was $52,572.<ref name="VI Bureau of Economic Research-2016"/> About 28.7% of families and 32.5% of the population were below the poverty line, including 41.7% of those less than 18 years old and 29.8% of those 65 or more years old. Nearly 70% of adults had at least a high school diploma and 19.2% had a bachelor's degree or higher.<ref>{{Cite web |last=<!--Not stated--> |date=2011 |title=Fact Finder |url=https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=DEC_10_DPVI_VIDP2&prodType=table |url-status=dead |archive-url=https://archive.today/20200214060955/https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=DEC_10_DPVI_VIDP2&prodType=table |archive-date=February 14, 2020 |access-date=February 18, 2017 |website=US Census |publisher=Department of Commerce}}</ref>

===Financial challenges===
Analysts reviewing the economy often point to the closure of the [[Hovensa|HOVENSA oil refinery]], the islands' largest private sector employer, in early 2012 as having a major negative impact on the territory's economy.<ref name="Daniel Shea Daily News Staff"/><ref name="online.wsj.com"/> In late 2013, the Federal Reserve Bank of New York's Research and Statistics Group pointed out that manufacturing employment dropped by 50% in May 2012 and by another 4% by November 2012, and that the GDP fell by 13%, "mainly due to an 80% drop-off in exports (mostly refined petroleum)". On the other hand, tourism and some other service industries were growing. As well, the 2010 census indicated that a relatively high share of the adult population is in the labor force: 66%, versus 65% on the mainland and well above 50% in Puerto Rico.<ref>{{Cite web |last=Bram |first=Jason |date=November 15, 2013 |title=A Long Road to Economic Recovery for the U.S. Virgin Islands |url=http://libertystreeteconomics.newyorkfed.org/2013/11/a-long-road-to-economic-recovery-for-the-us-virgin-islands.html |url-status=live |archive-url=https://web.archive.org/web/20190122154635/https://libertystreeteconomics.newyorkfed.org/2013/11/a-long-road-to-economic-recovery-for-the-us-virgin-islands.html |archive-date=January 22, 2019 |access-date=December 3, 2018 |website=Liberty Street Economics |quote=Looking ahead, we note that the tropical weather and picturesque beaches will continue to draw tourists, and natural resources bode well for rum production.}}</ref>

A May 2016 report by Bloomberg expressed concern about the islands' tax-supported debt load.<ref>{{Cite web |last=Chappatta |first=Brian |date=May 31, 2016 |title=More in Debt Than Puerto Rico, the Virgin Islands Rejects Rescue |url=https://www.bloomberg.com/news/articles/2016-05-31/more-in-debt-than-puerto-rico-the-virgin-islands-rejects-rescue |url-status=live |archive-url=https://web.archive.org/web/20170216140812/https://www.bloomberg.com/news/articles/2016-05-31/more-in-debt-than-puerto-rico-the-virgin-islands-rejects-rescue |archive-date=February 16, 2017 |access-date=February 15, 2017 |website=Bloomberg }}</ref> By January 23, 2017, this had increased to $2 billion. That translated to a per capita debt of $19,000, which was higher than the per capita debt in Puerto Rico which was undergoing a severe financial crisis at the time. A Debtwire analyst writing in ''[[Forbes]]'' indicated that nothing short of a miracle would prevent a financial collapse.<ref name="Baribeau" /> Another area of concern was the structural budget deficit which was at $110 million in mid February 2017.<ref>{{Cite web |last=Gilbert |first=Ernice |date=February 15, 2017 |title=FINANCIAL CRISIS: MAPP EXECUTIVE ORDER SUSPENDS HIRING, TRAVEL, WAGE NEGOTIATIONS AND LIMITS USE OF GOV'T VEHICLES |url=http://viconsortium.com/business/financial-crisis-mapp-executive-order-suspends-hiring-travel-wage-negotiations-and-limits-use-of-govt-vehicles/ |url-status=live |archive-url=https://web.archive.org/web/20170216143052/http://viconsortium.com/business/financial-crisis-mapp-executive-order-suspends-hiring-travel-wage-negotiations-and-limits-use-of-govt-vehicles/ |archive-date=February 16, 2017 |access-date=February 16, 2017 |website=VI Consortium }}</ref> The government instituted a new law in March 2017 with new or increased taxes on rum, beer, tobacco products and sugary drinks, as well as internet purchases and timeshare unit owners.<ref>{{Cite web |date=March 24, 2017 |title=The Sin Tax is Now Law |url=http://newsofstjohn.com/2017/03/23/the-sin-tax-is-now-law/ |url-status=dead |archive-url=https://web.archive.org/web/20170809222425/http://newsofstjohn.com/2017/03/23/the-sin-tax-is-now-law/ |archive-date=August 9, 2017 |access-date=July 27, 2017 |website=NewsofStJohn.com}}</ref>

===Tourism===
Tourism, trade, and other service-oriented industries are the primary economic activities, accounting for nearly 60% of the GDP. Approximately 2.5 million tourists per year visit, most arriving on [[cruise ships]].<ref name="VI Bureau of Economic Research-2016"/> Such visitors do not spend large amounts of money ($146.70 each on average) but as a group, they contributed $339.8 million to the economy in 2012.<ref>{{Cite web |last=Garely |first=Dr. Elinor |date=November 9, 2014 |title=Interview: The Honorable Beverly Nicholson-Doty, Commissioner of Tourism, United States Virgin Islands |url=http://www.eturbonews.com/52370/interview-honorable-beverly-nicholson-doty-commissioner-tourism- |url-status=dead |archive-url=https://web.archive.org/web/20170216125357/http://www.eturbonews.com/52370/interview-honorable-beverly-nicholson-doty-commissioner-tourism- |archive-date=February 16, 2017 |access-date=February 15, 2017 |website=E Turbo News |publisher=eTurboNews, Inc. |quote=Dr. Elinor Garely, Editor-in-Chief, TourismExecutives.com}}</ref> Euromonitor indicates that over 50% of the workforce is employed in some tourism-related work.<ref>{{Cite web |last=<!--Staff writer(s); no by-line.--> |date=2015 |title=Travel and Tourism in US Virgin Islands |url=http://www.euromonitor.com/travel-and-tourism-in-us-virgin-islands/report |url-status=live |archive-url=https://web.archive.org/web/20170322215250/http://www.euromonitor.com/travel-and-tourism-in-us-virgin-islands/report |archive-date=March 22, 2017 |access-date=February 15, 2017 |website=Euromonitor }}</ref>

Additionally, the islands frequently are a starting point for private [[yacht charter]]s to the neighboring [[British Virgin Islands]].[[File:RCCL Adventure Of The Seas (22908986604).jpg|thumb|RCCL Adventure Of The Seas]]

===Other sectors===
The manufacturing sector consists of mainly [[rum]] [[Distillation|distilling]]. The agricultural sector is small, with most food being imported. International business and services in the financial sector are a small but growing component of the economy. Most energy is also generated from imported oil, leading to electricity costs four to five times higher than the U.S. mainland.<ref>{{Cite web |last=Andrew |date=February 19, 2012 |title=USVI, NREL Partner to Reduce Fossil FuelS 60% by 2025 |url=http://cleantechnica.com/2012/02/19/us-virgin-islands-launches-15-year-energy-initiative-to-reduce-fossil-fuel-use-60/ |url-status=live |archive-url=https://web.archive.org/web/20130117053305/http://cleantechnica.com/2012/02/19/us-virgin-islands-launches-15-year-energy-initiative-to-reduce-fossil-fuel-use-60/ |archive-date=January 17, 2013 |access-date=December 13, 2012 |website=[[CleanTechnica]]}}</ref> The Virgin Islands were the highest oil consumers per capita in the world in 2007.<ref>{{Cite web |title=Energy > Oil > Consumption > Per capita: Countries Compared |url=http://www.nationmaster.com/country-info/stats/Energy/Oil/Consumption/Per-capita |archive-url=https://web.archive.org/web/20170707205908/http://www.nationmaster.com/country-info/stats/Energy/Oil/Consumption/Per-capita |archive-date=July 7, 2017}}</ref> The [[Virgin Islands Water and Power Authority]]<ref>{{Cite web |title=U.S. Virgin Islands Water and Power Authority (WAPA) |url=http://www.viwapa.vi |url-status=live |archive-url=https://web.archive.org/web/20090522005355/http://www.viwapa.vi/ |archive-date=May 22, 2009 |access-date=December 13, 2012 |publisher=Viwapa.vi}}</ref> also uses imported energy to operate its desalination facilities to provide fresh water.

===Government===
The ''[[The World Factbook|CIA World Factbook]]'' lists the value of federal programs and grants&nbsp;— $241.4 million in 2013, 19.7% of the territory's total revenues&nbsp;— and that "the economy remains relatively diversified. Along with the tourist industry, it appears that rum exports, trade, and services will be major income sources in future years".<ref>{{Cite web |last=<!--Staff writer(s); no by-line.--> |date=2014 |title=Central America and Caribbean – VIRGIN ISLANDS – Economy |url=https://www.cia.gov/the-world-factbook/countries/virgin-islands/ |access-date=February 15, 2017 |website=CIA |archive-date=January 13, 2021 |archive-url=https://web.archive.org/web/20210113025648/https://www.cia.gov/the-world-factbook/countries/virgin-islands/ |url-status=live }}</ref>

===Tax and trade===
The U.S. Virgin Islands are an independent [[customs territory]] from the mainland United States and operate largely as a [[free port]]. U.S. citizens thus do not have to clear customs when arriving in the U.S. Virgin Islands, but do when traveling to the mainland. Local residents are not subject to US federal income taxes on U.S. Virgin Islands source income; they pay taxes to the territory equal to what their federal taxes would be if they lived in a state.<ref>{{Cite report |date=November 1997 |title=U.S. INSULAR AREAS, Application of the U.S. Constitution |url=http://www.gao.gov/archive/1998/og98005.pdf |url-status=dead |publisher=U.S. General Accounting Office |page=37 |archive-url=https://web.archive.org/web/20131103093032/http://www.gao.gov/archive/1998/og98005.pdf |archive-date=November 3, 2013 |access-date=July 16, 2012 |quote=US federal individual and corporate income taxes as such are not currently imposed in US insular areas.}}</ref>

In 2014, the territory is considered as a [[tax haven]].<ref>{{Cite web |last=Browning |first=Lynnley |date=2014 |title=A Made-in-America Offshore Tax Haven |url=https://www.newsweek.com/2014/09/19/made-america-offshore-tax-haven-269135.html |website=newsweek.com}}</ref> In 2018, the [[European Union|EU]] added it on the [[European Union tax haven blacklist]].<ref>{{Cite web |date=2024 |title=Timeline - EU list of non-cooperative jurisdictions |url=https://www.consilium.europa.eu/fr/policies/eu-list-of-non-cooperative-jurisdictions/timeline-eu-list-of-non-cooperative-jurisdictions/ |website=consilium.europa.eu}}</ref>