Virgin Islands rum exports grow as economy slides

Rum exports from the Virgin Islands grew by 22% last year despite the country’s shrinking economy, new figures have revealed.

Figures have shown that rum exports from the Virgin Islands grew 22% last year

Citing data compiled by US Department of Commerce Bureau of Economic Analysis, Breaking News Trinidad and Tobago reports that although the Islands’ gross domestic product (GDP) dropped 5.4% due to a dip in exports and consumer spending, its rum industry defied the trend of decline.

Increased tourism in the rum industry also provided a boost to the region’s slowing economy, with visitor arrivals increasing 2.2%.

UK drinks giant Diageo moved production of its Captain Morgan rum to the island of St Croix in the Virgin Islands from Puerto Rico in 2008.

Diageo was persuaded to make the move by the offer of a new-build distillery, plus other subsidiaries and tax exemptions reportedly worth US$2.7bn if it remained in the country for 30 years.