Macro - Country Economic Forecasts - Virgin Islands (US)

Macro - Country Economic Forecasts - Virgin Islands (US)

We've raised our 2023 GDP growth forecast for the US Virgin Islands by 1.5ppts to 3.1% y/y after resilient growth of 13.9% y/y last year. The islands are set for a record-high number of tourist arrivals this year. Given the strong correlation in the inflation rates of the islands and the US, we think CPI inflation will stay elevated at an average of 6.7% this year, with food, non-alcoholic beverages, and transportation prices spiking.