ECONOMY IN GIBRALTAR

Formerly predominated by the British Military presence and dockyard, Gibraltar's last 20 years have witnessed a cut back in the involvement of such, which today only constitutes a small percentage of its economy. However the enviable port facilities and infrastructure remain, leading the shipping industry to be the major economic influence in Gibraltar today. As well as this, Gibraltar's privileged location moments from the celebrated Costa del Sol, North African coastline and a myriad of sites of cultural and historic interest, in addition to its enviable climate and fantastic amenities, result in more than 5 million visitors a year, many of which step ashore from cruise liners. This great influx of tourism has created another major source for Gibraltar's economy, where new hotels, restaurants and leisure facilities are being constructed to accommodate the ever growing number of visitors.

Thanks to its offshore tax regime, Gibraltar has become the headquarters for many in the financial services sector, where not only banks and investments firms are established, but large online betting and gaming corporations due to its great telecommunication facilities.

Gibraltar's currency is the Gibraltar pound and is equivalent to the Sterling which may also be used throughout. As well as this, the Euro is widely accepted in most shops and it is important to note that there are no exchange controls in Gibraltar. With an unemployment rate of only 2% and a GDP per Capita of $27,900, Gibraltar's economy is experiencing a healthy progression and is expected to keep doing so in the foreseeable future.

Economy of Gibraltar is dependent on tourism, shipping, the internet, and financial center activities. Earlier, UK Ministry of Defense served as a major source of revenue for Gibraltar. But now, British military contributions account for only 11 percent of Gibraltar’s economy
Economic freedom of Gibraltar
Low taxes contribute heavily to Gibraltar’s economic freedom. Large gaming and betting companies have set up business in Gibraltar because of low-tax regime in the country. Improved telecommunication facilities add to the attractiveness of doing business in Gibraltar
Gibraltar GDP
According to CIA’s World Factbook figures, Gibraltar’s GDP reached $1.066 billion in 2005. That was nearly a 7 percent increase over previous year GDP of Gibraltar. GDP per capita stood at around $38,000 in 2005.
Inflation
In 2005, inflation in Gibraltar hovered around 3 percent. In 2006, inflation came down to 2.6 percent. In 2007 and subsequent years, inflation in Gibraltar was expected to remain somewhere between 2 percent and 3 percent.
Imports and exports
As per 2005 figures recorded in CIA's World Factbook, goods and services worth about $2.967 were imported into Gibraltar. Major import commodities that were brought into Gibraltar included fuels, foodstuffs, and manufactured goods. Important import partners for Gibraltar were Spain, Russia, Italy, UK, and France.
In 2005, Gibraltar exported goods and services worth more than $270 million. Petroleum continued to be a dominant export commodity for Gibraltar followed by manufactured goods. Unlike imports, Spain lies 2nd in the list of major export partners for Gibraltar, with UK occupying number one position
Future of Gibraltar
Future of Gibraltar looks bright with a lot depending on finance, shipping and tourism sectors. Visitors in Gibraltar run in excess of 7 million people. Technology sector is also predicted to become a mainstay of Gibraltar’s economy, with betting and gaming companies generating significant amount of revenues for the government.