Falklands’ economy poised to expand 5.3% following a contraction in 2009
The Falkland Islands economy is expected to expand by 5.3% in real terms during 2010, following a period of contraction in 2009, which was caused primarily by a poor fish harvest rather than the immediate effects of the global recession, according to the Economic Briefing & Forecast released by the Falklands’ government.
Fisheries is the largest sector in the Falklands economy, producing just over 50% of GDP and the main products are Illex and Loligo squid, together with fin-fish species such as rock cod, hake, kingclip and the valuable Chilean sea bass.
According to the document during 2010 above-average growth in public sector output, fisheries, agriculture and utilities should help compensate for an anticipated reduction of 15-20% in cruise ship tourism.
Tourism a great direct contributor to the Falklands economy saw the Islands receive 105 cruise ship visits carrying 62,500 passengers during the 2008/09 summer.
The retail trade, construction and hospitality industries are also expected to benefit this year from the ongoing de-mining and oil drilling projects and the imminent upgrade and extension of the runway and Mount Pleasant Airport.
Contractors employed by the British government commenced work during summer 2009-10 on locating, removing and destroying approximately 20,000 landmines laid by Argentine military forces after they invaded the Falkland Islands in 1982.
The semi-submersible drilling rig Ocean Guardian arrived in Falkland Islands waters in late January 2010, after an 83 day journey from Scotland. The oil drilling campaign is expected to last 8 months, after which it is anticipated that Ocean Guardian will leave Falklands waters while the results of the drilling campaign are analysed.
The first well, for Desire Petroleum, was ‘spudded’ on 22 February 2010. Desire Petroleum plans to drill a minimum of four wells (with the possibility of an additional two wells) while Rockhopper Exploration plans to drill two wells, all in waters to the north of the Falkland Islands. Ocean Guardian will also drill one well for BHP Billiton, and partner Falklands Oil and Gas, to the south of the islands.
Ocean Guardian is supported by three vessels, Maersk Traveller, Maersk Pacer and Toisa Invincible. These three tugs take it in turn to monitor the 500 metre safety exclusion zone enforced around the rig.
“The Falkland Islands are not remote from the world economic pressures as highlighted by a drop in investment income. Further economic decline during 2009 was caused by a poor squid harvest and reduced tourism spending. The full impact of this drop was somewhat offset by the Falkland Islands Government approving a deficit budget” said Roger Edwards spokesperson for members of the Legislative Assembly.
He went on to say, “The current year, in line with other world economies should see some recovery with early signs of an improved catch within the Illex fishery and higher wool and meat prices within the agricultural sector. The outlook in tourism remains bleak. Further effects could be felt by local residents as a result of a weaker sterling and higher oil prices adding to inflationary living and housing costs.”
Mr Edwards concluded, “The Falkland Islands Government has a duty of care to future generations, and in partnership with the private sector and other public agencies is actively progressing the Economic, Rural and Tourism Development Strategies to enable the Islands to make the most of future economic challenges and opportunities.”
The Economic Briefing & Forecast for 2010 is a seven pages document which examines the current global environment and its likely impact on the Falkland Islands. It reviews the fisheries, agriculture, tourism and other commercial sectors and examines the implications for the public finances of the Falklands.
The economic document was written by Sonny Jose, the Falkland Islands Government’s Head of Policy and Economic Adviser. Prior to joining the Islands’ Government in 2008, Mr Jose was managing a private investment fund and was marketing consultant to Glocap Partners LLC of New York. He is a trained economist with over 25 years of international experience in finance, investment, marketing and development.
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Please indicate what surprises could possibly get in the way of the Islands establishing a hydrocarbon industry (providing of course the exploration is successful). The Argentine leadership appear to have played all their cards at once with the only the option of refering the matter to The Hauge (which they have at the moment ruled out).
While it would be better for all to enjoy an industry partnership with Argentina it is still economically viable to bypass Argentina and process the raw crude in another location either in South or North America, West Africa or indeed the UK.
A right of centre politician in now in place in Chile and there is an election in Argentina which may result in less jingoism and more sound economic descisions that would benefit Argentine citizens directly and indirectly.
Do you want this opportunity to provide a more comfortable life for your family or would you rather cut off your nose to spite your face?
Dr Beef
Keep drilling.
Yes, keep on drilling. You r going to get to China, where you cowardly gave up Hong Kong...
www.infobae.com/imagenes/1057-1-Portaaviones-USS-Carl-Vinson-Argentina
www.gacetamarinera.com.ar/nota.asp?idNota=1674&idSec=7
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www.infobae.com/imagenes/1057-1-Portaaviones-USS-Carl-Vinson-Argentina
”Please indicate what surprises could possibly get in the way of the Islands establishing a hydrocarbon industry (providing of course the exploration is successful). The Argentine leadership appear to have played all their cards at once with the only the option of refering the matter to The Hauge (which they have at the moment ruled out).?
Read my other comments
“While it would be better for all to enjoy an industry partnership with Argentina it is still economically viable to bypass Argentina and process the raw crude in another location either in South or North America, West Africa or indeed the UK.”
Your costs will be too steep.
“A right of centre politician in now in place in Chile and there is an election in Argentina which may result in less jingoism and more sound economic descisions that would benefit Argentine citizens directly and indirectly.”
Thats chiles choice and has nothing to do with Argentina. As for the Argentine Election, who ever we choose is our matter and who ever will be chosen will defend the Malvinas claim. The current government is making sound economic decisions and there is no need to change that.
Do you want this opportunity to provide a more comfortable life for your family or would you rather cut off your nose to spite your face?
What opportunity? The one that you try to deny us by stealing our natural resorces...YOU PIRATE! By the way, my family and I have a pretty confortable way of life as it is, why should you even think otherwise you ignorant thief. I am not cutting off my nose but I'd be glad to cut yours off for you.
Keep drilling. Read some more history grease guns
international law though has yet to recognise such logical and intelligent interpretations of reasoned discussion.
The Falklands are totally different, firstly we are not leased territory, nor are we too small to survive economically - we do it. Thirdly we are a different people, way of life,laws and customs to our neighbours.
LAUGH, 7%??? In your dreams and keep listening to your Kirchner plactic doll the crony capitalist. We all know that the republic of che idiots will grow less than the nations Chile, Peru and Brazil. Argentina will perform better if you know that the kirchners manipulate the numbers and will perform better compared to 2009 when the economy contracted dramatically. Inflation is rising and debt interest rates rising will be a bigger surprise for you clows in the republic of che idiots a.s.a.p..LAUGH. Good jobs falklands, show those idiot che idiots what real capitalism. 7%...hahahahahaha. Exocet che idiot, show us a link where they “believe” Argentina will grow 7%..I wouldn't be suprised if it's one of your state newspapers..LAUGH.
Hong Kong was leased to the UK in 1897, the leese was always paid, and when the leese was coming to the expiry date, The UK willingly gqave it back to the Chineese better than ever. Which really boosted the Chinesse ecomony, and allowed them to grow.
The ceromony was quite spectacular, parades with the Black Watrch in there full fancy dress parading the streets, joyous handshakes, and a very very open invitation to do business in the future.
But then again, if you googled it, or read a history book not printed in Argentina, you both would of known this.
Besides, i liked what your former President has to say about it's current government......
Laughing all the way to the bank, Keep DRILLING BOYS.................xD
PS. I cant see America siding (wholeheartedly) with the Argentines, when Britain have been America's closest allies since the 1910s.
Lets face it, Argentina has neither the political, historical, legal nor the military capability to take the Falklands. All they can do is resort to Bully-Boy tactics, why is this......... Because like all Bullies, they are nothing more than cowards. Fact of life i'm afraid.
Here's a thought, If the UK is such cowards, then why do we defend the rights of others, whom can not defend themselves.............
If it ever came to conflict (which it never will, cause one side can not finance it/too scared to) I for one would be happy to sign the dotted line once more, and defend the Falklands from the mindless drones of the Argies.
Can i hear Pirates/Goto Work/pay off debt etc etc from the other side????? Wonder who will be first to post.
Jag satsade några pengar det är gift
The world is too big a place guys.
Rumours here in Britain are of an oil find in the Falklands which delights me not because I'm British or anti Argentinian.
It would delight me because it's just a good thing in it's own right.
As a matter of interest The Chinese National Oil corporation have just puchased 50% of an Argentinian company which happens to own 40% of 'Pan American' which is the second largest Oil company in Argentina.
Guess who owns the other 60%? Well actually it's British Petroleum.
Shock horror shock.
Having discovered this you could lobby your government to have it nationalised but would you really want to upset China?
Scrabble anyone?
Paul.
1. How the Falklands are not entitled to self determination
2. How they are still a colony.
3. How apparently they are still under direct rule.
4. How Argentina is economically and strategically threatened by a defense force and a group of 4,000 farmers and fishermen.
5. How the UK ordered the rig in when it was the Islands Govt who have done it.
6. How the territroial integrity of Argentina is threatened.
7. How China and Russia will mysteriously side with Argentina.
I rest my case...
My, you are sure are a bitter and twisted individual. Why ther violent and personal nature of your comment?
Cut of my nose? Would like to see you try pal. After playing rugby against many Argentine teams I am certainly not worried about any empty threat you put my way.
BTW, if we were stealing your resources then why is no relevant body doing anything to stop us and why not therefore refer the matter to the ICJ? The reason is that the oil exploration is perfectly legal and the admission that your leadership will not take the matter to The Hauge is tant amount to admitting they do not have a legal foot to stand on.
Also, with the cost of oil as it is, it is perfectly feasible to ship the oil to the UK or West Africa, the technology is already in use to do this. I doubt this will happen though as there are other states in the Americas who would love to get involved. It a business descision that trancends politics or the embarrasing outbursts by your leadership.
Argentina is in no way going to come out of this in a stronger position and you have more realistic and pressing things to deal with.
Argentina have no more significant cards to play so simlpy get invovled in collaboration and you will take home some winnings or lose the lot to another player.
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