Finance minister not worried about Q1 negative growth

Dana Malcolm

Staff Writer 

#TurksandCaicos, September 26, 2023 – E Jay Saunders, TCI Finance Minister, isn’t worried about an economic downturn following a quarter of negative growth in Q1 of 2023.

Speaking to Magnetic Media on Tuesday September 19th, the country’s Deputy Premier said:  “Revenues don’t grow forever— you will have declines— but I am not nervous.”

During the recent Throne Speech, it was revealed that revenues were down and spending, too had decreased for the first quarter of TCIG’s fiscal year.

Saunders explained that with any country or even business, there were quarterly dips and spikes in economic performance but what mattered was the overall picture, which for the Turks and Caicos keeps climbing.

He also explained what could have caused the dip.

Saunders said that over the past two years the sale of luxury condominiums from places like the Ritz Carlton and post pandemic traveling boom, had rocketed the country’s income pumping up the cash brought in from stamp duties and other related taxes.

With less travel predicted and the country in a sort of in-between stage of construction with major buildings in the process of being finished but not as much new inventory on the market, Saunders said a drop in profits was not far-fetched.

He stressed though that this was not a reflection on ‘Brand TCI,’ rather the expected rise and fall of the economy. With the introduction of new real estate and the prime tourism season, revenues are expected to rebound.

The dip does however highlight an issue in the Turks and Caicos, that is its heavy dependence on tourism to buoy the economy and how quickly that can turn, as evidenced by the recent pandemic.

The Government says it has clocked the issue and is working to diversify the economy to isolate residents from economic shocks.  The question is whether those reported efforts to build other significant revenue streams for the TCI happening quickly enough.