Editing Economy of Gibraltar

{{Short description|none}}
{{Use dmy dates|date=February 2021}}
{{Use British English|date=February 2012}}
{{Infobox economy
| country = [[Gibraltar]]
| image = 
| caption = Gibraltar five pound note
| currency = [[Pound Sterling]]
| year = 1 July - 30 June
| organs = [[European Union|EU]], [[Organisation for Economic Co-operation and Development|OECD]] and [[World Trade Organization|WTO]]
| rank = 
| gdp = {{increase}}£2.344 billion (2018)
| growth = {{increase}}5.9% (2018)<ref name=budget>{{cite news|title=Chief Minister's Budget Address|url=https://www.gibraltar.gov.gi/new/sites/default/files/HMGoG_Documents/CHIEF%20MINISTERS%20BUDGET%20ADDRESS%202017%20with%20charts.pdf|archive-url=https://web.archive.org/web/20150402010101/https://www.gibraltar.gov.gi/new/sites/default/files/HMGoG_Documents/CHIEF%20MINISTERS%20BUDGET%20ADDRESS%202017%20with%20charts.pdf|access-date=18 April 2018|url-status=dead|archive-date=2 April 2015}}</ref>
| per capita = {{increase}}$111,875.67(2023/2024 Forecast)<ref name=budget/>
| sectors = agriculture 0%, industry 0%, services 100% (2008 est.)
| inflation = {{steady}}2.6% (2006)
| poverty = n/av
| gini = n/av
| labor = 12,690 (including non-Gibraltar laborers) (2001)
| occupations = agriculture - negligible, industry 40%, services 60% (2001)
| unemployment = 3% (2005 est.)
| industries = [[tourism]], banking and finance, [[ship repairing]], tobacco, gambling
| exports = $271 million (2004 est.)
| export-goods = (principally reexports) [[petroleum]] 51%, [[manufactured goods]] 41%, other 8%
| export-partners = n/av
| imports = $2.967 billion (2004 est.)
| import-goods = [[fuel]]s, manufactured goods, [[foodstuff]]s
| import-partners = n/av
| gross external debt = n/av
| debt = {{decrease}} 7.5% of GDP (2008 est.)
| revenue = $475.8 million (2008 est.)
| expenses = $452.3 million (2008 est.)
| foreign reserves = n/av
| aid = 
| credit = 
| cianame = gibraltar
| spelling = 
}}

The '''economy of Gibraltar''' consists largely of the [[Tertiary sector of the economy|services sector]]. While part of the [[European Union]] until [[Brexit]], the [[British overseas territories|British overseas territory]] of [[Gibraltar]] has a [[Law of Gibraltar|separate legal jurisdiction]] from the [[United Kingdom]] and a different [[Tax law|tax system]].<ref>[http://www.gibraltar.gov.gi/gov_depts/taxation/tax_index.htm Gibraltar Taxation home page] {{webarchive |url=https://web.archive.org/web/20100418002936/http://www.gibraltar.gov.gi/gov_depts/taxation/tax_index.htm |date=18 April 2010 }}</ref>
The role of the [[Ministry of Defence (United Kingdom)|UK Ministry of Defence]], which at one time was Gibraltar's main source of income, has declined, with today's economy mainly based on [[shipping in Gibraltar|shipping]], [[Tourism in Gibraltar|tourism]], [[financial services]], and the [[Internet]] (mostly gambling).

As of 2020, [[Brexit]] represents a major uncertainty for the Gibraltar economy.

==Shipping==
{{Main|Shipping in Gibraltar}}

; Bunkering
Gibraltar is one of the largest [[bunkering]] ports in the Mediterranean Sea, with 4.3 million tonnes of bunkers delivered in 2021 to over 5,500 ships. This has become the main activity within the Port of Gibraltar. Increased competition from Algeciras in 2022 resulted in a fall to around 3.4m tonnes.<ref>{{cite web |title=Algeciras benefits as Gibraltar 2022 bunker calls head for 12 year low |url=https://shipandbunker.com/news/emea/778476-algeciras-benefits-as-gibraltar-2022-bunker-calls-head-for-12-year-low |date=23 December 2022}}</ref>

==Finance==
Until [[Brexit]] Gibraltar was a constituent part of the [[European Union]] as a [[Special Member State territories and the European Union#Gibraltar|Special Member State territory]], having joined the [[European Economic Community]] with the United Kingdom in 1973, under the provisions of the [[Treaty of Rome]] relating to European dependent territories. However, it is exempt from the [[Common external tariff]], the [[Common Agricultural Policy]] and the requirement to levy [[Value added tax]].<ref>[http://www.gibraltar.gov.gi/latest_news/topical_speeches/status_in_eu.htm Gibraltar's EU status] {{webarchive |url=https://web.archive.org/web/20090917105438/http://www.gibraltar.gov.gi/latest_news/topical_speeches/status_in_eu.htm |date=17 September 2009 }}</ref>

[[Financial institution]]s operating in Gibraltar are regulated by the [[Gibraltar Financial Services Commission]].<ref>[https://web.archive.org/web/20070903205444/http://www.fsc.gi/fsc/commission.htm Gibraltar Financial Services Commission]</ref>
Gibraltar has had a stock exchange since 2014, the [[Gibraltar Stock Exchange]].<ref>{{Cite web |url=https://www.gsx.gi/ |title=Gibraltar Stock exchange |access-date=9 June 2015 |archive-url=https://web.archive.org/web/20150402093410/https://www.gsx.gi/ |archive-date=2 April 2015 |url-status=bot: unknown}}</ref>

Subject to notifying the EU Commissioner, who must be satisfied that they meet certain criteria in accordance with the relevant [[Directive (European Union)|EU Directive]], Gibraltar-licensed or -authorised financial institutions can provide services throughout the EU and [[European Economic Area]] without having to seek separate licences or authorisation in the host [[Member State of the European Union|Member State]]. This is known as the ''passporting'' of [[financial services]].<ref>[https://web.archive.org/web/20070928041815/http://www.fsc.gi/gib/eea.htm Gibraltar Financial Services Commission - Overview]</ref>

In December 2008 in a landmark decision the [[European Court of Justice]] ruled that:<ref>{{Cite web |url=http://curia.europa.eu/jurisp/cgi-bin/form.pl?lang=EN&Submit=rechercher&numaff=T-211%2F04 |title=European Court of Justice ruling on regional selectivity |access-date=18 November 2019 |archive-url=https://archive.today/20120707143041/http://curia.europa.eu/jurisp/cgi-bin/form.pl?lang=EN&Submit=rechercher&numaff=T-211/04 |archive-date=7 July 2012 |url-status=dead }}</ref>

{{Blockquote|the Court finds that the competent Gibraltar authorities which have devised the tax reform have, from a constitutional point of view, a political and administrative status separate from that of the central government of the United Kingdom.}}

This allowed the implementation of a new low tax system which took full effect in 2010.

Referred to as an International Finance Centre,<ref>[https://web.archive.org/web/20070928041740/http://www.fsc.gi/press/article20112004.htm Gibraltar Financial Services Commission - Building a good reputation]</ref> Gibraltar was among 35 jurisdictions identified by the [[Organisation for Economic Co-operation and Development]] (OECD) as a [[tax haven]] in June 2000.<ref name=OECD>[[OECD]], March 2002 [http://www.oecd.org/document/59/0,2340,en_2649_201185_2074555_1_1_1_1,00.html Gibraltar Commits to Co-operate with OECD to Address Harmful Tax Practices]  {{webarchive|url=https://web.archive.org/web/20151015230752/http://www.oecd.org/document/59/0%2C2340%2Cen_2649_201185_2074555_1_1_1_1%2C00.html |date=15 October 2015 }}. Retrieved on July 2006</ref> However, the list's disclaimer states:<ref>[http://www.oecd.org/document/43/0,2340,en_2649_33745_36153067_1_1_1_1,00.html OECD issues a disclaimer on outdated report]  {{webarchive|url=https://web.archive.org/web/20070429033941/http://www.oecd.org/document/43/0%2C2340%2Cen_2649_33745_36153067_1_1_1_1%2C00.html |date=29 April 2007 }}</ref>

{{quote|That list should be seen in its historical context and as an evaluation by OECD member countries at a particular point in time of which countries met the criteria set out in the 1998 Report, Harmful Tax Competition: An Emerging Global Issue. More than five years have passed since the publication of the OECD list contained in the 2000 Report and positive changes have occurred in individual countries' transparency and exchange of information laws and practices since that time. The list has not been updated to reflect such changes.}}

As a result of having made a commitment in accordance with the OECD's 2001 Progress Report on the OECD's Project on Harmful Tax Practices, Gibraltar is not included in the OECD's list of uncooperative tax havens.<ref name=OECD/> It has also never been listed on the [[FATF Blacklist]] of uncooperative countries in the fight against [[money laundering]]. It may also be referred to as an [[offshore financial centre]], by international institutions such as the [[International Monetary Fund]] (IMF).<ref>[[IMF]], 4 June 2006 [http://www.imf.org/external/np/ofca/ofca.asp Offshore Financial Centers (OFCs): IMF Staff Assessments]. Retrieved July 2006.</ref>

However, in its April 2009 progress report, the OECD listed Gibraltar in the list of jurisdictions which, although committed, had not "substantially implemented" yet the internationally agreed tax standard.<ref>{{cite web|url=http://www.oecd.org/dataoecd/38/14/42497950.pdf |title=A progress report on the jurisdictions surveyed by the OECD global forum in implementing the internationally agreed tax standard - Progress made as at 4 October 2009 |access-date=1 January 2010 |date=4 April 2009 |work=OECD |publisher=Organisation for Economic Co-operation and Development |url-status=dead |archive-url=https://web.archive.org/web/20091001100240/http://www.oecd.org/dataoecd/38/14/42497950.pdf |archive-date=1 October 2009}}</ref> Following Gibraltar's signing of 12 additional [[Tax Information Exchange Agreements]] (TIEAs), as of October 2009, with jurisdictions including the UK, US and Germany,<ref>{{cite web |url=http://www.chronicle.gi/headlines_details.php?id=17495 |title=Gibraltar 'white-listed' by OECD |access-date=22 October 2009 |date=22 October 2009 |publisher=The Gibraltar Chronicle |archive-url=https://web.archive.org/web/20110927140904/http://www.chronicle.gi/headlines_details.php?id=17495 |archive-date=27 September 2011 |url-status=dead}}</ref> to sum 13, Gibraltar is currently listed in the OECD [[whitelisted gambling jurisdictions|"white list"]], and is considered a jurisdiction that has substantially implemented the tax standard. It therefore shares the same status as OECD member states such as the UK, the US, Spain or Germany.<ref>{{cite web |url=http://www.oecd.org/dataoecd/50/0/43606256.pdf |title=A progress report on the jurisdictions surveyed by the OECD global forum in implementing the internationally agreed tax standard - Progress made as at 20 October 2009 |access-date=22 October 2009 |date=20 October 2009 |work=OECD |publisher=Organisation for Economic Co-operation and Development |archive-url=https://web.archive.org/web/20091007012156/http://www.oecd.org/dataoecd/50/0/43606256.pdf |archive-date=7 October 2009 |url-status=dead}}</ref>

Fiscal advantages, including no tax on [[capital income]], are offered to a maximum of 8,464 offshore qualified companies [[Incorporation (business)|incorporated]] in Gibraltar.<ref name=OFF>[http://www.gibraltaroffshore.com/gibraltar-tax-exempt-company-changes.htm Gibraltar Tax Exempt Company Registration Changes] {{Webarchive|url=https://web.archive.org/web/20061206014044/http://www.gibraltaroffshore.com/gibraltar-tax-exempt-company-changes.htm |date=6 December 2006 }}. Retrieved on July 2006</ref> After an agreement with the European Union in 2005, this [[tax exemption|tax exempt]] regime is due to disappear on 31 December 2010.<ref name=OFF/>

A 2007 IMF report on the regulatory environment and [[anti–money laundering]] has once again endorsed Gibraltar's robust regulatory environment.
<ref>{{cite web | url = http://www.gibraltar.gov.gi/latest_news/press_releases/2007/118-2007.pdf | title = Publication of the IMF Evaluation on Gibraltar's Supervision of Banking, Insurance and Anti-Money Laundering Measures | author = Government of Gibraltar | access-date = 17 October 2008 | url-status = dead | archive-url = https://web.archive.org/web/20081118191855/http://www.gibraltar.gov.gi/latest_news/press_releases/2007/118-2007.pdf | archive-date = 18 November 2008}}</ref>

According to the report:<ref name="autogenerated1">[http://www.gibraltar.gov.gi/gov_depts/finance/IMF_Reports/Assessment_of_Financial_Sector_Supervision_and_Regulation..pdf] {{webarchive|url=https://web.archive.org/web/20090327121904/http://www.gibraltar.gov.gi/gov_depts/finance/IMF_Reports/Assessment_of_Financial_Sector_Supervision_and_Regulation..pdf|date=27 March 2009}}</ref><ref>[http://www.gibraltar.gov.gi/gov_depts/finance/IMF_Reports/Detailed_Assessment_Report_on_Anti-Money_Laundering_and_Combating_the_Financing_of_Terrorism.pdf] {{webarchive|url=https://web.archive.org/web/20090327121918/http://www.gibraltar.gov.gi/gov_depts/finance/IMF_Reports/Detailed_Assessment_Report_on_Anti-Money_Laundering_and_Combating_the_Financing_of_Terrorism.pdf|date=27 March 2009}}</ref><ref>[http://www.gibraltar.gov.gi/gov_depts/finance/IMF_Reports/Detailed_Assessment_Report_of_Observance_of_the_Insurance_Core_Principles.pdf] {{webarchive|url=https://web.archive.org/web/20090327121913/http://www.gibraltar.gov.gi/gov_depts/finance/IMF_Reports/Detailed_Assessment_Report_of_Observance_of_the_Insurance_Core_Principles.pdf|date=27 March 2009}}</ref><ref>[http://www.gibraltar.gov.gi/gov_depts/finance/IMF_Reports/Detailed_Assessment_Report_of_Observance_of_the_Basel_Core_Principles.pdf] {{webarchive|url=https://web.archive.org/web/20090327121929/http://www.gibraltar.gov.gi/gov_depts/finance/IMF_Reports/Detailed_Assessment_Report_of_Observance_of_the_Basel_Core_Principles.pdf|date=27 March 2009}}</ref>

{{quote|Gibraltar has a well-regulated financial sector. The Gibraltar authorities are concerned with protecting the reputation and integrity of Gibraltar as a financial center, and are cognizant of the importance of adopting and applying international regulatory standards and best supervisory practices. Gibraltar has a good reputation internationally for cooperation and information sharing.}}

In 2008 Gibraltar was listed for the first time in the [[Global Financial Centres Index]] published by the [[City of London Corporation]]. [[Rock of Gibraltar|The Rock]] was ranked 26th in a list of 69 leading finance centres around the world based on an online survey of 1,236 business professionals, who provided a total of 18,878 assessments.<ref>[https://web.archive.org/web/20080312140423/http://www.cityoflondon.gov.uk/Corporation/business_city/research_statistics/research_publications.htm Global Financial Centres Index]</ref> In the most recent GFCI report of 2011, Gibraltar was ranked 63rd in the world, and 8th of the leading [[offshore financial centre]]s (OFCs).<ref>{{Cite web |url=http://www.zyen.com/GFCI/GFCI%209.pdf# |title=GFCI 2011 |access-date=4 July 2012 |archive-url=https://web.archive.org/web/20121128152601/http://www.zyen.com/GFCI/GFCI%209.pdf |archive-date=28 November 2012 |url-status=dead}}</ref>

The [[Tax Justice Network]] ranked Gibraltar at #43 out of 71 jurisdictions on its 2011 Financial Secrecy Index. Gibraltar's "secrecy score" was 78, equating to [[Banking in Switzerland|Switzerland]] in that category.<ref>{{cite web|url=http://www.financialsecrecyindex.com/2011results.html |title=2011 Results - Financial Secrecy Index |access-date=2013-08-12 |url-status=dead |archive-url=https://web.archive.org/web/20130828000235/http://www.financialsecrecyindex.com/2011results.html |archive-date=28 August 2013}}</ref>

Gibraltar was also ranked in the top 20 centres for [[e-readiness]], coming 20th after major capitals and leading offshore centres.<ref>[http://www.chronicle.gi/readarticle.php?id=000013083 Gibraltar Chronicle Story] {{webarchive |url=https://web.archive.org/web/20080614144921/http://www.chronicle.gi/readarticle.php?id=000013083 |date=14 June 2008 }}</ref>

==Tourism==

{{main|Tourism in Gibraltar}}

==Present and historical manufacturing in Gibraltar==

=== Pre-1900 History ===

* [[1704]] - The [[Gibdock|HM Dockyard in Gibraltar]] is established after the [[Capture of Gibraltar]]. The initial facilities include a [[Wharf|quay]], careening wharf, and multiple workshops.<ref>{{Cite book |last1=Fa |first1=Darren |title=The fortifications of Gibraltar 1068-1945 |last2=Finlayson |first2=Clive |date=2006 |publisher=Osprey Pub |isbn=978-1-84603-016-1 |series=Fortress |location=Oxford, UK ; New York, NY}}</ref> 
* [[1720]] - [[South Mole, Gibraltar Harbour|South Mole]] is built during the 1720s. It is a small dockyard with a careening wharf, mast house, and multiple workshops as well.
* [[1810]] - [[Marcus Bland|Marcus Henry Bland]] arrives in Gibraltar and founds [[Bland Group]] as a shipping agency.<ref>{{Cite web |title=Timeline {{!}} Bland Family History {{!}} The Bland Group |url=https://www.blandgroup.com/company/history |archive-url=https://web.archive.org/web/20230207121651/https://www.blandgroup.com/company/history |archive-date=7 February 2023 |access-date=2025-02-26 |website=www.blandgroup.com |language=en |url-status=live }}</ref>
* [[1840]] - Coaling facilities are introduced to Gibraltar.
* [[1891]] - The Gaggero family take over operations of the Bland Group, as Joseph Gaggero buys the company.<ref>Gaggero, Joe. (2005) ''Running with the Baton: A Gibraltar Family History''. Gibraltar: Joe Gaggero. p. 16. {{ISBN|0958301700}}</ref>
* [[1895]] - Captain Augustus Phillimore's plan for a new naval dockyard is approved by Parliament.

=== 20th Century History ===

* [[1902]] - An air lock diving-bell plant and barge are imported to install heavy moorings in Gibraltar’s rocky seabed.<ref>"Entrance to a Diving-Bell". ''Illustrated London News'': 1 (Cover). 25 March 1906.</ref><ref>{{Cite web |date=1917 |title=The Times History of the War. Vol. X |url=https://archive.org/stream/timeshistoryofwa10lond/timeshistoryofwa10lond#page/60/mode/1up |url-status=dead |archive-url=https://archive.org/stream/timeshistoryofwa10lond/timeshistoryofwa10lond#page/60/mode/1up}}</ref><ref>Davis, RH (1909). Diving Scientifically and Practically Considered. Being a Diving Manual and Handbook of Submarine Appliances (6th ed.). Tolworth, Surbiton, Surrey: Siebe Gorman & Company Ltd. p. 693.</ref><ref>{{Cite web |date=2004-07-26 |title=Getting Down to the Job |url=http://www.mcdoa.org.uk/Getting_Down_to_the_Job.htm |access-date=2025-02-26 |archive-url=https://web.archive.org/web/20040726095307/http://www.mcdoa.org.uk/Getting_Down_to_the_Job.htm |archive-date=26 July 2004 }}</ref>
* [[1914]] - Two Bland Group ships are attacked by [[U-boat|German submarines]].
* [[1931]] - [[GB Airways|Gibraltar Airways]] is launched.
* [[1969]] - The [[Gibraltar–Spain border|Spanish-Gibraltar border]] closes, and the Bland Group shifts its focus to tourism.
* [[1972]] - Gibraltar Industries is founded.<ref>{{Cite web |title=Gibraltar Industries, Inc. |url=https://www.key.com/businesses-institutions/our-transactions/deals.gibraltar-industries-inc.html?utm_source=chatgpt.com}}</ref>
* [[1984]] - The HM Dockyard is sold to [[A&P Group]], later passed to the [[Government of Gibraltar]] as Gibraltar Ship Repair.<ref>{{Citation |title=Speer, Rear-Adm. F. Shirley Litchfield-, (24 March 1874–31 May 1922), RN; Superintendent of Sheerness Dockyard since 1919 |date=2007-12-01 |work=Who Was Who |url=https://doi.org/10.1093/ww/9780199540884.013.u203183 |access-date=2025-02-26 |publisher=Oxford University Press|doi=10.1093/ww/9780199540884.013.u203183 }}</ref>
* [[1990]] - The HM Dockyard is taken over by Norway’s [[Kværner]], then closed in 1996 for 18 months.

=== Modern Day (21st Century) ===

* [[2005]] - Gibraltar Corporation is founded. It is a manufacturer of springs, wire forms, and metal stampings.<ref>{{Cite web |title=Spring Forming Manufacturing Machinery |url=https://gibraltar8.com/ |access-date=2025-02-26 |website=Gibraltar Corporation |language=en-US}}</ref>
* [[2020]] - Bassadone Automotive Group supplyies ambulances and other project vehicles converted locally from [[SUV]] vehicles to the United Nations and other agencies, employing some 320 staff across its range of activities.<ref>{{cite web |date=29 July 2020 |title=Government of Gibraltar Announces Important Deal with Major Local Company |url=https://www.gibraltar.gov.gi/press-releases/government-of-gibraltar-announces-important-deal-with-major-local-company-4982020-6070 |access-date=29 December 2020 |website=gibraltar.gov.gi}}</ref>
* [[2022 in Gibraltar|2022]] - The HM Dockyard is acquired by UK-based Balaena Ltd, reviving the military ship repair operation.<ref>{{Cite web |title=Gibraltar Chronicle - The Independent Daily First Published 1801 |url=http://www.chronicle.gi/headlines_details.php?id=17879 |archive-url=https://web.archive.org/web/20120227041206/http://www.chronicle.gi/headlines_details.php?id=17879 |archive-date=27 February 2012 |access-date=2025-02-26 |website=www.chronicle.gi |url-status=dead }}</ref>
* 2022 - [[KeyBank|KeyBanc Capital Markets]] closes a syndication of a US$400M [[Revolving credit|Senior Secured Revolving Credit Facility]] for Gibraltar Industries, Inc.

==Internet business==
Gibraltar offers a favourable [[Tax law|tax system]], good [[internet]] connectivity along with a well-developed regulatory system. All [[gambling]] operations in Gibraltar require licensing under the [[Gambling Act 2005]]. The [[Gibraltar Regulatory Authority]] is the Gambling Commissioner under the Gambling Act 2005, and therefore the regulatory body.<ref>[https://web.archive.org/web/20070716032626/http://www.gra.gi/Gambling/home.html The Gibraltar Regulator]</ref> The UK has published plans to protect online gamblers from crime and exploitation by banning gambling adverts from poorly regulated countries<ref>[https://web.archive.org/web/20080614021623/http://www.gibnews.net/cgi-bin/gn_print.pl/?MISC070131_1.xml UK Gambling ad ban plans published]</ref> which specifically mention Gibraltar as an approved location.

==Defence spending==
{{Expand section|date=February 2025}}
The UK's [[Ministry of Defence (United Kingdom)|Ministry of Defence]] was originally the mainstay of Gibraltar's economy but this has greatly reduced to around 6% of the [[gross domestic product]]. In 2006 the Ministry of Defence announced that the provision of services to the [[military base]] would be contracted to make further cost savings. This was finalised in January 2007.<ref>[http://www.gibnews.net/cgi-bin/gn_print.pl/?GPIX070116_1.xml MoD to make cost cuts]{{dead link|date=March 2011}}</ref>

==Economy in detail==
Gibraltar benefits from an extensive shipping trade, a well regulated international finance center, tourism, and has become a global leader in the virtual gaming industry.<ref>[http://www.fco.gov.uk/servlet/Front?pagename=OpenMarket/Xcelerate/ShowPage&c=Page&cid=1007029394365&a=KCountryProfile&aid=1018965242498 FCO company profile]</ref><ref>[http://news.bbc.co.uk/2/hi/business/4776021.stm Gibraltar proves a winning bet]</ref>

Self-sufficient Gibraltar benefits from an extensive shipping trade, offshore banking, and its position as an international conference center. The British military presence has been sharply reduced and now contributes about 7% to the local economy, compared with 60% in 1984. The financial sector, tourism (almost 5 million visitors in 1998), shipping services fees, and duties on consumer goods also generate revenue. The financial sector, the shipping sector, and tourism each contribute 25%-30% of GDP. Telecommunications accounts for another 10%. In recent years, Gibraltar has seen major structural change from a public to a [[private sector]] economy, but changes in government spending still have a major impact on the level of employment.

Figures from the [[CIA World Factbook]] show the main export markets in 2006 were [[United Kingdom]] 30.8%, [[Spain]] 22.7%, [[Germany]] 13.7%, [[Turkmenistan]] 10.4%, [[Switzerland]] 8.3%, [[Italy]] 6.7% while the corresponding figures for imports are [[Spain]] 23.4%, [[Russia]] 12.3%, [[Italy]] 12%, UK 9%, [[France]] 8.9%, [[Netherlands]] 6.8% and [[United States]] 4.7%.<ref>{{cite web|url=https://www.cia.gov/the-world-factbook/countries/gibraltar/|title=Gibraltar|access-date=20 December 2007|publisher=[[The World Factbook]]}}</ref>

The Gibraltar Government state that economy grew in 2004/2005 by 7% to a GDP of £599,180,000. Based on statistics in the 2006 surveys, the Government statisticians estimate it has grown by 8.5% in 2005/6 and by 10.8% in 2006/7 and that the GDP is probably now around 730 million. Inflation was running at 2.6% in 2006 and predicted to be 2% to 3% in 2007. Speaking at the 2007 budget session, Peter Caruana, the Chief Minister said "The scale of Gibraltar's economic success makes it one of the most affluent communities in the entire world."

'''Labour force:'''
12,690 (including non-Gibraltar labourers) (2001)

'''Labour force - by occupation:'''
services 60%, industry 40%, agriculture NEGL%
'''Unemployment rate'''
2% (2001)

'''Budget'''
revenues: $455.1 million
expenditures: $423.6 million (2005 est.)

'''Public debt'''
15.7% of GDP (2005 est.)

'''Industries'''
[[tourism]], [[banking]] and [[finance]], [[ship]] repairing, [[tobacco]]

'''Industrial production growth rate'''
NA%

'''[[Electricity]] - production'''
142 million kWh (2006 est.)

'''Electricity - production by source'''

'''[[fossil fuel]]'''
100%

'''[[Hydropower|hydro]]'''
0%

'''[[Nuclear reactor|nuclear]]'''
0%

'''other'''
0%

'''Electricity - consumption'''
142 million kWh (2006 est.)

'''Electricity - exports'''
0 kWh (1998)

'''Electricity - imports'''
0 kWh (1998)

'''Oil - production'''
{{convert|0|oilbbl/d}} (2001 est.)

'''Oil - consumption'''
{{convert|42000|oilbbl/d}} 2001

'''Oil - exports'''
NA (2001)

'''Oil - imports'''
NA (2001)

'''[[Agriculture]] - products'''
none

'''Exports'''
$271 million (2004 est.)

'''Exports - commodities'''
(principally reexports) [[petroleum]] 51%, manufactured goods 41%, other 8%

'''Exports - partners'''
[[United Kingdom|UK]], [[Morocco]], [[Portugal]], [[Netherlands]], [[Spain]], [[United States|US]], [[Germany]]

'''Imports'''
$2.967 billion (2004 est.)

'''Imports - commodities'''
Fuels, manufactured goods, and foodstuffs

'''Imports - partners'''
UK, Spain, [[Japan]], Netherlands

[[Fiscal year]]
1 July - 30 June

The above figures taken from the '''CIA World Factbook''' September 2009 edition.<ref>[https://www.cia.gov/the-world-factbook/countries/gibraltar/ CIA World Factbook]</ref>

==Interaction with the nearby area==
In September 2009 the [[Gibraltar Chamber of Commerce]] released an Economic impact study and analysis of the economies of Gibraltar and the [[Campo de Gibraltar]] produced by Professor John Fletcher of [[Bournemouth University]].<ref>[http://www.gibnews.net/cgi-bin/gn_view.pl/?GPIX090916_1.xml chamber releases report on economy]</ref> The report aimed at clarifying the effects of Gibraltar's economy on the Campo area. It demonstrated that Gibraltar's economy has a significant and very positive economic impact on the Campo de Gibraltar. It also noted that the Campo region played a "significant role [..] in Gibraltar's economic development as well", concluding that "[b]oth economies and societies would be the poorer without the other..."<ref>[http://www.gibraltarchamberofcommerce.com/docs/GCoC-24920-FletcherReport-Abridged.pdf ''An Economic impact study and analysis of the economies of Gibraltar and the Campo de Gibraltar''] {{webarchive |url=https://web.archive.org/web/20110711092601/http://www.gibraltarchamberofcommerce.com/docs/GCoC-24920-FletcherReport-Abridged.pdf |date=11 July 2011 }}, by John Fletcher, September 2009. Introduction (page 2)</ref>

Its conclusions were:<ref name=summary>[http://www.gibraltarchamberofcommerce.com/docs/GCoC-24920-FletcherReport-Abridged.pdf ''An Economic impact study and analysis of the economies of Gibraltar and the Campo de Gibraltar''] {{webarchive |url=https://web.archive.org/web/20110711092601/http://www.gibraltarchamberofcommerce.com/docs/GCoC-24920-FletcherReport-Abridged.pdf |date=11 July 2011 }}, by John Fletcher, September 2009. Executive Summary (page 6)</ref>
{{quote|<!--Material utilized from this document must be used verbatim, though text may be omitted if clearly marked in accordance with WP:NFC-->
* The Gibraltar economy has a significant and positive economic impact on the Campo de Gibraltar [[comarca|region]] when considered from the point of view of net recurrent expenditure.
* In 2007 Gibraltar businesses imported more than £174m of goods and services from Spain (excluding [[petroleum]] imports).
* Spanish frontier workers earned almost 243m in 2007 and this money was repatriated and spent in the Campo de Gibraltar region to generate further rounds of economic activity.
* Other frontier workers (excluding Spanish and Gibraltarian) earned £82.8m from within the economy of Gibraltar.
* The number of jobs supported by the Gibraltar economy (within Gibraltar) is equivalent to 18% of the total 102,468 jobs recorded in the Campo de Gibraltar region in 2007.
* Residents of Gibraltar spent almost £30m on shopping, food and other goods and services, in Spain, during 2007.
* Gibraltarians with second homes in the Campo de Gibraltar spent more than £33.5m in the Spanish economy during 2007.
* Gibraltar's economy increased the level of output in the Campo de Gibraltar in 2007 by £301.745m. Total visitor spending in Gibraltar in 2007 was £230.6m of which £176m was by visitors across the land frontier. Of this £176m land frontier visitor expenditure, some £112.4m was attributable to Campo de Gibraltar residents and a further £21.27m is assumed to be displacement from the Spanish economy, leaving a total net direct output effect of £168m from recurrent spending (£302m-£134m).
* In 2007 the £302m direct output effect of the Gibraltar economy on the Campo de Gibraltar economy was responsible for a direct increase in [[gross domestic product]] (GDP) within the Campo de Gibraltar region of £195m.
* Using the [[Andalusia]] Regional Input-Output model to estimate the secondary effects of the two economies' interaction, the Gibraltar economy was responsible for a further increase in GDP in the Campo de Gibraltar region of £125m, resulting in a total increase in GDP of just over £420m.
* The Gibraltar economy was responsible for approximately 12.2% of the total GDP in the Campo de Gibraltar in 2007.
* In terms of a further wealth effect created by the Gibraltar economy, the evidence would seem to suggest that property values within the Campo de Gibraltar region have increased by up to 40% because of the proximity to Gibraltar. With just over 86,000 households in the region and using a conservative property value (at 2007 prices) this could account for an increase in Campo de Gibraltar asset values of somewhere between £1.4 to £5.4 billion. The reason for such large variation is explained partly through the lack of data that are available without undertaking a detailed survey and partly because of the volatility experienced by the Spanish housing market over the past year, where property prices, particularly in some areas, have fallen dramatically. In part this fall in property prices is explained by the general economic downturn being experienced by the global economy and in part by the effect of the falling [[pound sterling]] with respect to the value of the [[euro]] which will have put further downward pressure on property prices in the region.
* Gibraltar also imported approximately 1.5m tonnes of petroleum products from the Campo de Gibraltar region for bunkering during 2007 and the value of this has not been included in the analyses. If the value of this fuel is included as an import from the Campo de Gibraltar it adds almost another £300m to the impact of Gibraltar on the region, [using Meyrick and Associates of fuel bunker prices for this period and a GBP to [[United States dollar|USD]] exchange rate of 0.5049 being the mid-point in 2007].
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==Taxation==
{{main|Taxation in Gibraltar}}

In 2019, ''the International Agreement on Taxation and Protection of Financial Interests between Spain and the United Kingdom on Gibraltar'' was signed by all three countries. This agreement covers such issues as tax co-operation between the authorities in Gibraltar and Spain, the criteria for tax residence of individuals and companies and procedures for administrative cooperation.<ref>{{cite web |title=New tax agreement between Spain and Gibraltar |url=https://www.blevinsfranks.com/new-tax-agreement-between-spain-and-gibraltar/ |date=29 April 2021}}</ref>

== Various economic indicators by national origin ==
The average annual earnings of [[Indo-Gibraltarians]] is nearly twice that of the rest of [[Gibraltarian people]] and approximately 1.5 times that of [[Immigration to the United Kingdom since 1922|immigrants in the UK]], thus making people of Indian descent by far the most economically affluent [[ethnic group]] in Gibraltar.<ref>[http://www.gibraltar.gov.gi/ Government of Gibraltar Website]</ref>

{|
|- valign="top"
|
{| class="wikitable"
|-
! Rank !! National Origin              !! Average annual<br/>earnings</tr>
|    1 || Indian           ||align="right"| £32,585</tr>
|    2 || UK British      ||align="right"| £22,011</tr>
|    3 || Other [[European Union|EU]]        ||align="right"| £20,613</tr>
|    4 || All other nationals ||align="right"| £20,414</tr>
|    5 || National average    ||align="right"| £19,383</tr>
|    6 || Gibraltarian           ||align="right"| £18,934</tr>
|    7 || Spanish               ||align="right"| £13,359</tr>
|    8 || Moroccan             ||align="right"| £12,933</tr>
|}
|
{| class="wikitable"
|-
! Rank !!  Origin             !! Hourly pay</tr>
|    1 || Indian              ||align="right"| £14.73</tr>
|    2 || UK British                  ||align="right"| £11.30</tr>
|    3 || Other EU            ||align="right"| £10.58</tr>
|    4 || All other nationals ||align="right"| £10.48</tr>
|    5 || National average    ||align="right"| £10.03</tr>
|    6 || Gibraltarian           ||align="right"|  £9.46</tr>
|    7 || Spanish               ||align="right"|  £6.86</tr>
|    8 || Moroccan             ||align="right"|  £6.64</tr>
|}
|
{| class="wikitable"
|-
! Rank !! Origin              !! Unemployment<br/>rate</tr>
|    1 || Moroccan             ||align="right"| 7.3%</tr>
|    2 || Spanish               ||align="right"| 2.8%</tr>
|    3 || National average           ||align="right"| 2%</tr>
|    4 || Gibraltarian    ||align="right"| 2%</tr>
|    5 || UK British            ||align="right"| 1.4%</tr>
|    6 || Other EU ||align="right"| 1.4%</tr>
|    7 || All other nationals                  ||align="right"| 0.7%</tr>
|    8 || Indian               ||align="right"| 0.4%</tr>
|}
|- valign="top"
|
{| class="wikitable"
|-
! Rank !! Origin              !! Average monthly<br/>earnings</tr>
|    1 || Indian               ||align="right"| £2,455.61</tr>
|    2 || UK British                 ||align="right"| £1,818.57</tr>
|    3 || Other EU            ||align="right"| £1,715.89</tr>
|    4 || All other nationals ||align="right"| £1,628.83</tr>
|    5 || National average    ||align="right"| £1,627.49</tr>
|    6 || Gibraltarian           ||align="right"| £1,625.49</tr>
|    7 || Spanish               ||align="right"| £1,171.22</tr>
|    8 || Moroccan             ||align="right"| £1,148.04</tr>
|}
|
{| class="wikitable"
|-
! Rank !! Origin              !! % in higher managerial<br/>and professional occupations</tr>
|    1 || Indian               ||align="right"| 20.3%</tr>
|    2 || UK British                  ||align="right"| 12.6%</tr>
|    3 || Other EU            ||align="right"| 11.8%</tr>
|    4 || All other nationals ||align="right"|  9.5%</tr>
|    5 || National average    ||align="right"|  9.0%</tr>
|    6 || Gibraltarian           ||align="right"|  8.4%</tr>
|    7 || Spanish               ||align="right"|  5.9%</tr>
|    8 || Moroccan             ||align="right"|  4.4%</tr>
|}
|}

==References==
{{Reflist|30em}}

==External links==
{{Commons category|Economy of Gibraltar}}
{{portal|Gibraltar}}
*[http://www.gibraltar.gov.gi/ The Gibraltar Government website]
*[http://www.fsc.gi/ The Financial Services Commission]
*[http://www.gra.gi/ The Gibraltar regulatory authority]
*[https://web.archive.org/web/20051215174934/http://www.gibraltar.gov.gi/gov_depts/govt_finance/Public_Finances_2005_2006.pdf Government revenue and expenditure 2006 - pdf]

{{Gibraltar topics}}
{{EU Dependent economies|state=collapsed}}

{{DEFAULTSORT:Economy Of Gibraltar}}
[[Category:Economy of Gibraltar| ]]
[[Category:Economies of Europe by dependent territory|Gilbratar]]