Turks and Caicos Islands CDB Annual Economic Review 2006 99
1. RECENT ECONOMIC PERFORMANCE
The Turks and Caicos Islands (TCI) recorded strong GDP
growth for the fourth consecutive year in 2006, estimated
at 10.8% compared with 12% in 2005 and 11.6% in 2004,
driven mainly by the expansion in the tourism industry
and a surge in construction activities. The agriculture,
transport and communication, real estate and wholesale
and retail trades sectors also contributed to economic
growth in 2006. The strengthening of economic activity
during 2006 occurred in the context of relative price
stability, notwithstanding high petroleum import prices.
Infl ation was estimated at 1.5% in 2006 compared with
3.7% in 2005.
The fi scal performance improved signifi cantly during
the fi rst nine months of FY 2006/07, ending December
2006, compared with the corresponding period in FY
2005/06. Strong recurrent revenue growth resulted in
a substantial increase in recurrent account savings in FY
2006/05, despite a large increase in recurrent expenditure.
Substantial growth in capital revenue resulted in a lower
overall defi cit in FY 2006/07 compared with FY 2005/06,
in spite of substantial capital spending.
B. Sectoral Performance
Tourism Valued-added in tourism increased by an
estimated 18.9% in 2006, compared with growth of
15.5% in 2005 and 6.5% in 2004, respectively, refl ecting
an increase of 12.5% to 225,000 in stayover arrivals
and substantial growth in the number of cruiseship
passengers, the latter following the opening of new
terminal facilities in Grand Turk. Growth in the industry
is expected to continue as a result of substantial
investment in a range of visitor facilities across the
archipelago, and in consequence of substantial ongoing
marketing and promotion efforts in North America,
Europe, and Asia.