Above: the TCI House of Assembly

By the Caribbean Journal staff

The economy of the Turks and Caicos Islands is projected to grow by 3.4 percent this year, according to estimates released by the government’s Department of Strategic Policy and Planning.

Actual growth will depend on the recovery of the United States’ economy and the government’s ability to diversify, however, the department cautioned.

Last year, the territory’s economy declined by 2.1 percent, or a total of $540.6 million in 2012. The tourism sector declined by 3.5 percent, which led to a substantial portion of last year’s decline, as the sector accounts for roughly 42.8 percent of the TCI’s total GDP.

The projection for this year’s GDP is around $558.9 million.

The department said construction was projected to increase in the last quarter of this year, followed by a “surge” in 2014, as tourism projects like the West Caicos project and the JW Marriott get underway.