St Helena Facts and Figures
Economy
The collapse of the flax industry in the late 1960s and the withdrawal of the Union Castle Shipping Line in the 1970s heralded a new era for St Helena, typified by reductions in private sector employment and export activity, rising out-migration and a population decline. The current economy is characterised by a high cost environment as a consequence of its isolation, small local market and long distances from its suppliers. The decision to build St Helena an airport represents a monumental opportunity for St Helena's economic development prospects.
Macroeconomic trends
St Helena's economy is dominated by the public sector and aid flows. Government expenditure is largely funded by various forms of UK financial assistance in the form of budgetary aid, development and technical co-operation funds. The public sector dominates the economy accounting for about half of Gross Domestic Product (GDP). Remittances in kind and in cash provide an important supplement to personal incomes on St Helena. Remittances grew rapidly until reaching £4.3 million in 2002/03, but since declined to £2.6 million in 2005/06. One explanation for the decline is attributed to a changing pattern of out-migration. Whereas, Ascension and the Falkland Islands remain the main destinations for St Helenian migrant workers, the share of the UK has been increasing significantly and has become the primary destination for migrants who are leaving with their families. When migrants leave with their families less money is remitted back to the island.
St Helena's economy is characterised by a high import dependency, with imports of goods and services equivalent to 90 per cent of GDP. Most imports are sourced from South Africa and the UK.
Exports of goods are negligible and are limited to fish and a small amount of coffee.
The overall trend in total GDP and Gross National Product (GNP) in constant prices has been one of modestly favourable growth, though growth rates have fluctuated from year to year. Between 2000/01 and 2005/06 GDP grew by an average of 1.2 per cent, although GNP declined somewhat due to a decline in recorded remittances after 2002/03. Given the decline of St Helena's population, the growth of per capita incomes are higher than these growth figures suggest.
Due to its high import dependency St Helena's inflation rates are strongly influenced by the inflation rates of its principal trading partners, South Africa and the UK.
For further information and up to date figures, please contact the Development and Economic Planning Department, Statistics Office on Tel: (+290) 2138 or email Statistics Officer dknipe@sainthelena.gov.sh or susane@sainthelena.gov.sh
Private sector development
St Helena's private sector employs approximately 45 per cent of the labour force and is largely dominated by small and micro businesses, in retail trading, with small numbers engaged in the transport, construction, and fisheries sectors, and a limited number in the tourism sector. There are very few full-time agricultural businesses.
There are just over 200 private businesses employing close to 900 workers. The major employer, Solomon & Company (St Helena) Plc, which is 63 per cent owned by Government, employs 200 workers. Most private businesses are very small-scale with low earnings. According to the 2004 employers survey only 15 businesses employed more than ten workers and in 2005/06 only 84 businesses were taxable.( Data provided by SHG Finance Department).
For a more detailed extract from the St Helena Sustainable Development Plan 2007 - 2010 please download