Historically the British Virgin Islands has normally produced a Government budget surplus, but during the financial crisis of 2007–2008 the Territory began to run at a deficit, which continued after the global recession receded.

[9] The Economist argued that deteriorating economic conditions in the British Virgin Islands were caused "not [by] sagging revenues but public-sector profligacy".

However, because of an ongoing aggressive capital investment programme, and budget overruns on key public projects,[14] the Government ran dangerously low on available cash.

[1] In addition there was an estimated $21,000,000 of capital expenditure in 2016 (down 38.3% from the previous year), and debt service of $20,200,000 leaving a primary deficit of $19,370,000.

[1] In 2015, a total of 922,372 people visited the islands (of whom 529,354 were cruise ship passengers and 393,018 were overnight visitors), mainly from the United States.

[23] There are no recent official statistics on total numbers of incorporations (including struck, liquidated and dissolved companies) but these are estimated at 950,000.

[24] The British Virgin Islands is now one of the world's leading offshore financial centres, and boasts one of the highest incomes per capita in the Caribbean.

On 12 April 2007, the Financial Times reported that the British Virgin Islands was the second largest source of foreign direct investment in the world (behind Hong Kong) with over US$123,000,000,000.

The British Virgin Islands also operates as a domicile for captive insurance services, but a prolonged period of overzealous Government regulation combined with the Government's increasing pressure to hire only locals ("belongers") in the insurance industry decimated the industry.

Official reports from the Financial Services Commission reflect as of 30 June 2012 only 161 captives remain registered in the jurisdiction.

[23] Former president of the BVI's Financial Services Commission, Michael Riegels, recites the anecdote that the offshore finance industry commenced on an unknown date in the 1970s when a lawyer from a firm in New York telephoned him with a proposal to incorporate a company in the British Virgin Islands to take advantage of a double taxation relief treaty with the United States.

The development was only a limited success until 1991, when the United States invaded Panama to oust General Manuel Noriega.

At the time Panama was one of the largest providers of offshore financial services in the world, but the business fled subsequent the invasion, and the British Virgin Islands was one of the main beneficiaries.

[31] Livestock raising is the most important agricultural activity; poor soils limit the islands' ability to meet domestic food requirements.