The British Virgin Islands’ (BVI’s) positive role in the global economy has been underscored in a new independent report launched today: ‘Beyond globalisation: The British Virgin Islands contribution to global prosperity in an uncertain world’ .
The report, based on quantitative and qualitative research of firms operating in the BVI1, shows that the BVI is home to a globally respected international business and finance centre facilitating an estimated $1.4 trillion in cross-border trade and investment.
There are currently just over 375,000 active BVI Business Companies, roughly 57 per cent originating in Asia and 16 per cent from Europe and North America. Investment mediated by BVI Business Companies supports around 2.3 million jobs globally and generates an extra US$14bn each year in taxes for governments worldwide.
In the UK, BVI companies hold an estimated US$153bn in assets, with 134,000 jobs created by investment mediated through the BVI and US$3.5bn of tax revenues generated for the UK government.
Commenting on the report, Elise Donovan, CEO, BVI Finance, said, “This report provides clear evidence of the role the BVI plays in facilitating investment, stimulating economic growth, creating jobs and providing governments with much needed tax revenues. With this research, we can continue to break down some of the myths and educate more people on true role the BVI plays as a respected and valued international financial and business centre and a key intermediary in the global economy.”
She said, “Whatever form the next evolution of globalisation takes, international financial centres like the BVI will remain vital cogs in boosting the global economy by enabling investment, facilitating sophisticated transactions, and enabling a more efficient global marketplace.”
The ‘Beyond Globalisation’ report identifies three scenarios for the future of globalisation and the opportunities for the BVI. In the first scenario – ‘Weaker internationalism’ – pre-pandemic globalisation trends continue, albeit more slowly and with plenty of political obstacles to navigate. In ‘the bloc economy,’ economic and regulatory integration between countries continues within geopolitical blocs, but these different groups diverge. Lastly, ‘new economic nationalism’ is a partial reversal of globalisation with increased protectionism, less porous borders and more erratic politics.
Mark Pragnell, Director, Pragmatix Advisory, added, “Looking into an uncertain future and beyond the globalisation of recent decades, there are many different scenarios for geopolitics and economics, but the need will remain for expert, neutral and innovative centres, like the British Virgin Islands’, to support cross-border trade, investment and mobility.”