Back

Country Reports

Anguilla Country Report

Content provided by
IHS Markit Logo

Risk Level

Low
Moderate
Elevated
High
Very High
Severe
Extreme

Overview

Executive Summary

Concerns about the political and economic impact of Brexit for Anguilla as a UK Overseas Territory will remain high on the local agenda despite the 10 April 2019 extension to 31 October 2019 of the Article 50 process leading to the United Kingdom's exit from the European Union. One area of specific concern is the status of current EU development funding for Anguilla, although the UK government has said that it will make up any such funding lost due to the UK's exit from the EU and will continue with UK central government funding, currently GBP60 million per year. The issue of potential post-Brexit changes to freedom of movement for locals to neighbouring EU territories, notably to St Maarten, is also a concern, given its potential impact on locals and on tourism flows. Anguilla is under pressure from UK and EU authorities to improve financial transparency in its financial services sector. The EU considers Anguilla to have taken positive steps towards addressing the requirements noted by the EU listing process, but that it should complete the necessary steps by the end of 2019 to avoid being blacklisted in 2020. Local authorities appear committed to doing so. IHS Markit forecasts 3.8% GDP growth in 2019, up from negative 2.9% in 2018, driven by construction and tourism inflows as the economy rebounds from the damage caused by Hurricane Irma in 2017. Operationally, Anguilla is gradually recovering from the damage caused to its infrastructure by hurricanes in September 2017, including the reopening of the key ferry port terminal servicing routes to neighbouring St Maarten, and is moving forward with plans to modernise and expand the port. The port development, funded by the UK, is hoped to be completed by mid-2020. This will facilitate tourism flows, as would the initiation of direct flights between Anguilla and the United States, currently under consideration.
Last update: May 2, 2019

Operational Outlook

With a reasonable road network and good access to major airports, ongoing investment in upgrading port facilities, and a modern telecommunications system, infrastructure in Anguilla is relatively good by regional standards. Recovery of infrastructure – including roads and ports – post Hurricane Irma in September 2017 is continuing steadily with support from the UK. The island's offshore financial sector will have to adopt a public ownership register by 2023 or have it imposed by the UK government. However, corruption is not a major concern on Anguilla. Disruptive strike action is uncommon in Anguilla by regional standards.

Last update: May 18, 2019

Terrorism

The terrorism risk is low. There are no known domestic or foreign terrorist groups that would target Anguilla.

Last update: June 21, 2019

Crime

According to the Royal Antilles Police Force, overall crime levels have fallen year on year since 2015, and are very low by regional standards, with a total of only five murders recorded for the period January–December 2018. Private-sector firms are encouraged to protect against robberies by using burglar-alarms, employing security officers, or contracting one of the island's handful of security companies. Although the government is committed to keeping crime under control because of its importance to the tourism industry, the police force is small. Some foreign nationals have been among the victims of violent attacks in recent years, including sexual assault.

Last update: May 18, 2019

War Risks

The war risk is low. Anguilla is an overseas territory of the United Kingdom and would benefit from its protection if threatened by another state.

Last update: May 18, 2019

Social Stability

Strike action in Anguilla is relatively uncommon by regional standards. One of the most major recent incidents occurred in March 2015 when local ferry operators held a strike over fare controls. The government also faced several protest marches in mid-2016 regarding its approach to banking regulation and transparency after the financial crisis. However, such demonstrations are infrequent, peaceful and generally have a small number of participants, meaning they present little risk of violence or property damage.

Last update: May 18, 2019