Economy of Saint Helena
Encyclopedia
The economy of Saint Helena depends largely on financial assistance from the UK
, which amounted to about $5 million in 1998. Saint Helena
's local population earns income from fishing
, the raising of livestock
, and sales of handicrafts. Because there are few jobs, a large proportion of the work force has left to seek employment overseas.
A campaign is currently underway (reported on BBC Radio 4
, Today programme
, 10 July 2004) to encourage emigration from the UK to Saint Helena to aid development of the economy. The British government announced an intention in early 2005 to fund building of an international airport on the island by 2010. In 2009 the government postponed the plans while the UK was in recession. It estimated the total cost of construction would be more than £300m.
Saint Helena's gross domestic product
(GDP) by purchasing power parity for the 1994/5 financial year was US$13.9 million, and this figure, per capita, was $2,000. The financial year in Saint Helena runs from 1 April to 31 March. St. Helena's budget had revenues of $11.2 million, with expenditures of $11 million in the financial year ending 1993.
(mainly construction) and the remaining 46% are employed in service industry. In 1996, the rate of unemployment was 18%.
, potato
es, vegetable
s; timber
; fish
, crawfish
(on Tristan da Cunha)
), coffee
, handicrafts and Tungi Spirit
. Export partners were South Africa
and the United Kingdom
.
, fuel oil
s, animal feed, building materials, motor vehicles and parts, machinery and parts. Saint Helena's import partners, like its export partners, are South Africa and the UK.
, which is equivalent to 100 pence, and is at a par with the British Pound. The government issues its own coins and banknotes.
Banking services on St. Helena (and Ascension Island) are provided by the Bank of St. Helena
, which delivers a full retail banking
service to individuals and business in, and trading with, St. Helena.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, which amounted to about $5 million in 1998. Saint Helena
Saint Helena
Saint Helena , named after St Helena of Constantinople, is an island of volcanic origin in the South Atlantic Ocean. It is part of the British overseas territory of Saint Helena, Ascension and Tristan da Cunha which also includes Ascension Island and the islands of Tristan da Cunha...
's local population earns income from fishing
Fishing
Fishing is the activity of trying to catch wild fish. Fish are normally caught in the wild. Techniques for catching fish include hand gathering, spearing, netting, angling and trapping....
, the raising of livestock
Livestock
Livestock refers to one or more domesticated animals raised in an agricultural setting to produce commodities such as food, fiber and labor. The term "livestock" as used in this article does not include poultry or farmed fish; however the inclusion of these, especially poultry, within the meaning...
, and sales of handicrafts. Because there are few jobs, a large proportion of the work force has left to seek employment overseas.
A campaign is currently underway (reported on BBC Radio 4
BBC Radio 4
BBC Radio 4 is a British domestic radio station, operated and owned by the BBC, that broadcasts a wide variety of spoken-word programmes, including news, drama, comedy, science and history. It replaced the BBC Home Service in 1967. The station controller is currently Gwyneth Williams, and the...
, Today programme
Today programme
Today is BBC Radio 4's long-running early morning news and current affairs programme, now broadcast from 6.00 am to 9.00 am Monday to Friday, and 7.00 am to 9.00 am on Saturdays. It is also the most popular programme on Radio 4 and one of the BBC's most popular programmes across its radio networks...
, 10 July 2004) to encourage emigration from the UK to Saint Helena to aid development of the economy. The British government announced an intention in early 2005 to fund building of an international airport on the island by 2010. In 2009 the government postponed the plans while the UK was in recession. It estimated the total cost of construction would be more than £300m.
Saint Helena's gross domestic product
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
(GDP) by purchasing power parity for the 1994/5 financial year was US$13.9 million, and this figure, per capita, was $2,000. The financial year in Saint Helena runs from 1 April to 31 March. St. Helena's budget had revenues of $11.2 million, with expenditures of $11 million in the financial year ending 1993.
Industry
Saint Helena possesses construction, craft (including furniture and lacework) and fishing industries.Workforce
As of 1991, Saint Helena has a workforce of 2,416. A large proportion of the work force has, however, left to seek employment overseas. Of the workforce, 6% are employed in farming and fishing, 48% in industryIndustry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...
(mainly construction) and the remaining 46% are employed in service industry. In 1996, the rate of unemployment was 18%.
Electricity
In 1998, Saint Helena's energy production was 6 GWh, matching its consumption, of which 90% was produced by fossil fuels and the remaining 10% by wind turbines.Agriculture
The main agricultural products of Saint Helena are: maizeMaize
Maize known in many English-speaking countries as corn or mielie/mealie, is a grain domesticated by indigenous peoples in Mesoamerica in prehistoric times. The leafy stalk produces ears which contain seeds called kernels. Though technically a grain, maize kernels are used in cooking as a vegetable...
, potato
Potato
The potato is a starchy, tuberous crop from the perennial Solanum tuberosum of the Solanaceae family . The word potato may refer to the plant itself as well as the edible tuber. In the region of the Andes, there are some other closely related cultivated potato species...
es, vegetable
Vegetable
The noun vegetable usually means an edible plant or part of a plant other than a sweet fruit or seed. This typically means the leaf, stem, or root of a plant....
s; timber
Timber
Timber may refer to:* Timber, a term common in the United Kingdom and Australia for wood materials * Timber, Oregon, an unincorporated community in the U.S...
; fish
Fish
Fish are a paraphyletic group of organisms that consist of all gill-bearing aquatic vertebrate animals that lack limbs with digits. Included in this definition are the living hagfish, lampreys, and cartilaginous and bony fish, as well as various extinct related groups...
, crawfish
Tristan rock lobster
The Tristan rock lobster, Jasus tristani, is a species of rock lobster endemic to the Tristan da Cunha archipelago and Vema Seamount, north-east of Tristan. It is very closely related to J. paulensis and these two may represent a single species. The Tristan rock lobster features on the coat of...
(on Tristan da Cunha)
Exports
In 1995, exports were at a value of $704,000, with commodities exported including: fish (frozen, canned, and salt-dried skipjack, tunaTuna
Tuna is a salt water fish from the family Scombridae, mostly in the genus Thunnus. Tuna are fast swimmers, and some species are capable of speeds of . Unlike most fish, which have white flesh, the muscle tissue of tuna ranges from pink to dark red. The red coloration derives from myoglobin, an...
), coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
, handicrafts and Tungi Spirit
Tungi Spirit
Tungi Spirit is the name given to a distilled product made in Saint Helena from the fruit of the prickly or cactus pear .- Usage :...
. Export partners were South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
and the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
.
Imports
$14.434 million of imports were made in 1995, imported commodities including: food, beverages, tobaccoTobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...
, fuel oil
Fuel oil
Fuel oil is a fraction obtained from petroleum distillation, either as a distillate or a residue. Broadly speaking, fuel oil is any liquid petroleum product that is burned in a furnace or boiler for the generation of heat or used in an engine for the generation of power, except oils having a flash...
s, animal feed, building materials, motor vehicles and parts, machinery and parts. Saint Helena's import partners, like its export partners, are South Africa and the UK.
Economic aid
Saint Helena received $12.6 million in aid in 1995, and in 1997, $5.3 million from the United Kingdom.Currency
The local currency is the Saint Helena poundSaint Helena pound
The Saint Helena pound is the currency of the Atlantic islands of Saint Helena and Ascension, which are constituents of the British overseas territory of Saint Helena, Ascension and Tristan da Cunha...
, which is equivalent to 100 pence, and is at a par with the British Pound. The government issues its own coins and banknotes.
Banking services on St. Helena (and Ascension Island) are provided by the Bank of St. Helena
Bank of St. Helena
The Bank of St Helena is a government-owned bank based on the British overseas territory of Saint Helena, also operating in the dependent territory of Ascension Island. The Government of St. Helena owns 100% of the bank and operates it as a parastatal. The Governor appoints the board of Directors....
, which delivers a full retail banking
Retail banking
Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.-Types of...
service to individuals and business in, and trading with, St. Helena.