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Turks and Caicos Islands

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Table 2.2.1: Gross Domestic Product for the <strong>Turks</strong> & <strong>Caicos</strong> Isl<strong>and</strong>s 2000-2010<br />

YEAR Gross Domestic<br />

Product<br />

In Constant 2000<br />

Market Prices<br />

US $ (millions)<br />

Growth rate<br />

2000 319.4<br />

2001 341.9 7%<br />

2002 345.9 1%<br />

2003 378.2 9%<br />

2004 421.3 11%<br />

2005 481.9 14%<br />

2006 568.1 18%<br />

2007<br />

(prelim)<br />

632.1 11%<br />

(Source: DEPS, 2008a)<br />

The economy of the country was initially based on the salt industry in Gr<strong>and</strong> Turk, Salt Cay <strong>and</strong> South <strong>Caicos</strong><br />

<strong>and</strong> the industry remained the main economic activity of the <strong>Turks</strong> Isl<strong>and</strong>s until the 1960s when it fully<br />

collapsed leaving fishing as the main export sector. The diversification seen today was initiated by private<br />

investment in tourism infrastructure in Providenciales (see Section 2.3) <strong>and</strong> with the emergence of Offshore<br />

Financial Services (Kairi Consultants Limited, 2000a). US bases <strong>and</strong> a tracking station on Gr<strong>and</strong> Turk also<br />

assisted the economy, but these were closed in 1980 <strong>and</strong> 1983 respectively with a negative impact on the<br />

economy <strong>and</strong> on employment. In the 1980s, fishing (conch <strong>and</strong> lobster in particular) provided a boost to<br />

export earnings.<br />

Budgetary support from the British Government through Grant-Aid (established in the 1950s) has been<br />

discontinued, <strong>and</strong> assistance now comes mainly in respect of development aid, with the <strong>Turks</strong> <strong>and</strong> <strong>Caicos</strong><br />

currently benefitting from both the Basic Needs Trust Fund <strong>and</strong> the Special Development Fund (SDF) of the<br />

Caribbean Development Bank (Hughes, 2011; Kairi Consultants Limited, 2000a). Table 2.2.2 provides a<br />

more recent breakdown of the sectors contributing to GDP <strong>and</strong> the evolution of some sectors is presented<br />

graphically in Figure 2.2.1.<br />

7

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