Caribbean Region: Review of Economic Growth and ... - USITC

In recent years, the main economic activity on Montserrat has been construction. Montserrat’s economy andinfrastructure are being rebuilt, including a new small airport that opened in 2005, the single largest projectundertaken since the population relocated to the northern part of the island. The construction activitycontracted by 5 percent during 2006 mainly as a result of a slowdown in activity caused by the delay in thestart of several public works projects as a result of renewed volcanic activity. Montserrat issues work permitsto immigrant workers from other CARICOM countries to alleviate its shortage of labor.Increased economic activity in Montserrat is attributable to increases in earnings in the mining sector.Volcanic activity on the island has produced millions of cubic meters of sand, ash, pumice, and aggregatethat potentially can be harvested and exported to markets such as Anguilla, Antigua and Barbuda, Trinidadand Tobago, and the U.S. Virgin Islands. Mining activity on Montserrat reportedly increased sevenfoldbetween 2005 and 2006. Montserrat has a small manufacturing sector. The main manufacturing activitiesinvolve baking, furniture manufacturing, concrete block making, and craft production. Officials arediscussing the feasibility of establishing a facility to manufacture roof tiles from volcanic ash.Montserrat’s agricultural, fishing, and livestock sector has been devastated by volcanic and seismic activity,loss of labor force, and loss of transportation infrastructure. In the past, Montserrat’s farmers grew limes,bananas, vegetables, and cotton. Montserrat exported small amounts of vegetables and fruits to neighboringislands. In general, however, agriculture is declining in Montserrat and, according to one estimate, only 20farmers were consistent producers even before the volcanic activity. Montserrat also has produced livestockfor domestic use and export. Fish and other seafood also were exported. Agricultural production has resettledin the north of the island, where plots of land for crop production are smaller and less fertile, and fishinggrounds not as productive. Despite the May 2006 ashfall, agricultural output (crops and fishing) expandedby 60 percent, while livestock output declined by nearly 30 percent.4-88