2023-06-28 18:00:01
The economic growth of Saint-Martin was considerably hampered, between 2014 and 2021, by two major events: the passage of Hurricane Irma in September 2017 and the health crisis linked to Covid-19 from the end of 2020. INSEE and IEDOM have drawn up a report, following studying the GDP of the community, over this period.
The National Institute of Statistics and Economic Studies (INSEE) and the Overseas Departments Issuing Institute (IEDOM) presented the results of their new study of the Gross Domestic Product (GDP) of Saint-Martin. The corresponding report was made public on June 21; it is titled, very explicitly “between 2014 and 2021, the economic growth of Saint-Martin is hampered by hurricane Irma and the health crisis”.
Economic activity has clearly experienced significant fluctuations over this period.
Everything was going pretty well until 2016, when growth was sustained, at +2.7% on average per year.
Irma helping, a significant decline of 8% on average was observed, in 2017 and 2018, until a rebound of 6.5% in 2019. That year, the GDP of Saint-Martin amounted to 582, 6 million euros, i.e. a lower level than that observed five years earlier, in 2014 (-0.7%).
In 2020, the Covid-19 played, in turn, the disruptive elements. Successive periods of confinement and health restrictions have led to a drop in growth, down to -12.5%.
In 2021, the return to fine weather enabled a rise of 4.9%.
But the gap with 2016 remains significant; it stands at 17.2%.
While almost all sectors of activity have been marked by the successive climate and health crises, those of construction, industry and the mainly non-profit sector have stayed the course.
It should also be noted that, since the passage of major hurricane Irma, the population of Saint-Martin has decreased by 1.7% annually.
On January 1, 2019, the average population of Saint-Martin was 32,489 inhabitants, compared to 41,677 in Sint-Maarten, the Dutch part of the island.
However, in the French part, household consumption follows a positive dynamic, between 2015 and 2021; we speak on average of an increase of 9.4% on average. It was favored by the exceptional measures put in place following Irma.
Post-Irma reconstruction also boosted housing loans and investment loans for businesses and local authorities.
The restoration of public buildings and the burial of networks have favored the construction sector, which provides more jobs.
On the other hand, the hotel and catering industry lost manpower in these times of reduced activity. Tourism as a whole has suffered from the aforementioned crises. Interdependent, tourism, trade and transport record declines, in terms of contribution to the wealth of the territory.
In Saint-Martin, a third of the active population is unemployed; a rate that did not change between 2014 and 2019; the fact is that employment has fallen at the same time as the number of workers.
FOR FURTHER/
The full report of the Rapid Economic Accounts for Overseas Territories (CEROM), a project promoted by INSEE, IEDOM and the French Development Agency (AFD) in particular, is to be consulted > by clicking here.
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