News

HOVENSA Shutdown Leads to Significant Drop in US Virgin Islands’ GDP

By: Caribbean Journal Staff - August 19, 2013

Above: the USVI

By the Caribbean Journal staff

The real GDP of the United States Virgin Islands fell by 13.2 percent in 2012, according to the United States Bureau of Economic Analysis.

That was due almost entirely to the shutdown of the HOVENSA oil refinery in early 2012, which was the territory’s single-largest employer and primary supplier of fuel.

It was also the largest oil refinery in the Caribbean region. Its fate remains in the air as the government works to hammer out a sales agreement.

Excluding the imports, exports and inventory investment of the petroleum refining industry, the territory’s GDP actually increased by 2.6 percent, driven by growth in rum exports.

The latter got a boost due to the recent opening of a new distillery producing Captain Morgan Rum.

Territorial government spending also declined in 2012, the BEA said.

Popular Posts w punta cana

A New All-Inclusive W Hotel Is Opening This Year in Punta Cana 

The first-ever all-inclusive W Hotel in the Caribbean is opening this year in Punta Cana, Dominican Republic, Caribbean Journal has learned.  The hotel, part of a broad expansion for parent company Marriott International, is on the list of expected 2024 […]


Why Grenada Is a New Caribbean Luxury Hotspot

beach house silversands

From its world-renowned chocolate to its pristine beaches to a region-leading focus on sustainability, Grenada is as fascinating and unique as destination as you’ll find in the Caribbean.  But in the last few years, the lush Eastern Caribberan island has […]


5 Adults-Only Resorts to Visit Right Now in the Caribbean 

galley bay

Sometimes you just want that extra degree of serenity, of privacy, of seclusion. There is a reason, after all, that adults-only resorts are booming in popularity, particularly in the Caribbean: travelers want to know that when they arrive, they know […]


Related Posts maho bay

US Virgin Islands Continues Winter-Spring Travel Push 

The US Virgin Islands is continuing to ramp up its push to promote the territory as a winter and spring destination.  US Virgin Islands Tourism Commissioner Joseph Boschulte led a delegation across major US cities this month, including Atlanta, Boston, […]


The Pink Palm Is the Best Boutique Hotel in St Thomas, USVI

st thomas boutique hotel

Most visitors who make the trip to St Thomas find their way at least once to downtown Charlotte Amalie, with its enviable shopping and broad array of restaurants. Far fewer, though, ever stay in Charlotte Amalie overnight. But St Thomas’ […]


St Thomas Carnival Is Set for April 

st thomas carnival

Pageants, J’ouvert parties, parties and parades are on the agenda for he 2024 edition of St Thomas Carnival in the US Virgin Islands.  And this year’s St Thomas Carnival now has a date, running from April 28 to May 5, […]


SUBSCRIBE!

Sign up for Caribbean Journal's free newsletter for a daily dose of beaches, hotels, rum and the best Caribbean travel information on the net.


No. Thank You