The U.S. Virgin Islands are a group of islands and cays within the Virgin Islands archipelago, with the capital, Charlotte Amalie, located on the island of Saint Thomas.
According to the Federal Reserve Bank of St. Louis, as of 2024, 104,377 people live on the islands.
The U.S. Virgin Islands are a territory of the United States and thus have the U.S. Dollar as their national currency.
Official Name: United States Virgin Islands (USVI)
Political Status: Unincorporated territory of the United States
Major Islands: St. Thomas, St. Croix, St. John, Water Island
Approx. 87,000–100,000 depending on the dataset (2023–2024 estimates)
Census Bureau (2024): ~ 87,146
World Bank (2023): ~ 99,000
U.S. Dollar (USD)
Demographics:
Predominantly Afro-Caribbean population
Culturally influenced by U.S., African, Danish, and Caribbean traditions
Official language: English
Healthcare: Supported by local agencies + federal partners (CDC, HHS, FEMA).
The U.S. Virgin Islands were purchased from Denmark by the U.S. in 1917 for strategic military reasons.
The economy is dominated by:
Tourism (major driver—2 million+ visitors annually pre-pandemic)
Government employment
Small businesses
Service sector
The territory faces economic vulnerabilities common to small islands:
High import dependence
High energy costs
Hurricane exposure (Irma & Maria in 2017 had major long-term effects)
As of the most recent data, life expectancy at birth in the U.S. Virgin Islands is ~ 75.7 years (both genders combined)
Air Quality/Pollution & Greenhouse Gas/ CO^2 Emissions
According to real-time air-quality monitoring (2024), the average PM2.5 in USVI is about 2.6 µg/m³, which meets the World Health Organization (WHO) annual guideline.
The reported air-quality index (AQI) reading at a sample time was 14 (AQI⁺ US), indicating low pollution.
According to a recent (2022) climate-action plan for USVI, the territory emitted ~ 922,204 metric tons CO₂-equivalent across sectors.
USVI’s electric grid emissions intensity is much higher than in the continental U.S. — for instance, the average grid emissions factor is ~ 2,154 lbs CO₂ per MWh, compared with ~ 828 lbs CO₂/MWh for the U.S. mainland.
These indicators suggest USVI faces elevated emissions per unit of energy compared to many mainland locales.
The population has fallen: in 2024 official estimates put USVI population at ~ 87,146.
Over the past decade the population declined significantly (the 2020 census noted an ~18% drop over the prior decade).
Among adults 25+, only ~ 22.3% hold a bachelor’s degree or higher.
Economy and Tourist Dependence
The economy is heavily dependent on tourism, trade, and services, which account for ~ 60% of GDP. (economy)
Tourism also provides roughly half of civilian employment.
Because of this heavy reliance, external shocks (e.g. hurricanes, pandemics) tend to hit USVI particularly hard. For example, closures of its oil refinery and damage from hurricanes 2017 were major blows to the local economy.
According to a climate action plan, energy generation in USVI is still overwhelmingly reliant on fossil fuels — a factor influencing the high emissions intensity mentioned earlier.
Because USVI’s economy and livelihoods are tightly tied to tourism and coastal resources, its natural environment — including reefs, water quality, and ecosystem health — is under pressure.
The reliance on fossil-fueled energy generation makes reducing greenhouse-gas emissions more challenging, especially without infrastructural overhaul or transition to renewable.
Environmental Challenges (Niall)
Challenges In a Tourism Based Economy
While the U.S. has an incredibly diverse economy, nearly 60% of the USVI GDP is based on tourism, according to the VI Bureau of Economic Research. This heavy reliance on tourism leaves the USVI vulnerable to seasonal fluctuations, natural disasters and global economic downturns, and can be especially harmful due to the frequency of hurricanes that hit island nations like the U.S. Virgin Islands.
The USVI economy suffers from Hurricane damage more than other places because of its limited economic options. Major storms like Irma and Maria destroyed infrastructure and businesses, creating long-term unemployment that persists for months after the initial disaster.
The Broader Effects of Isolation
The high inflation of 6% of the USVI almost doubles the U.S. rate of 3.4% and is double than New York’s 3%. This high inflation can be in part explained by the extreme import dependence, in which the consumers end up paying the cost for importation. Due to the relative isolation as an island, import costs are higher than somewhere like New York which receives many of its supplies from within the country and from close proximity. This means that the USVI has a price level similar to New York while having far lower average income. When hurricanes hit, ports are damaged and supply chains break down, causing higher inflation. As a small nation, a few ports being damaged can cause massive problems for the entire island and be costly to repair.
What Does Global Warming Have To Do With This?
As global warming continues to worsen, the frequency and strength of tropical storms and hurricanes grows, costing nations like the U.S. Virgin Islands much more of their total GDP than developed countries that produce the carbon emissions that contribute to Global Warming.
Island countries like the U.S. Virgin Islands are disproportionately affected by the effects of global warming compared to the top producing countries, with the U.S. Virgin Islands having a near 0 net carbon emissions since the year 1960.
The U.S. Virgin Islands suffers from higher rates of unemployment, income inequality and inflation, while the top contributors to global warming benefit from using cheaper energy that effectively harms these smaller island nations.
Economic Indicators (Rickell)
Real GDP:
(USVI) Approx; 2.4% in 2022 (BEA)
(USVI) 3.7% in 2021 (BEA)
(USVI) $4.67 billion in 2022 (World Bank)
(U.S.) $29.18 trillion in 2024 (World Bank)
(NYS) Approx. $1.84 trillion in 2024 (FRED)
(Manhattan) Approx. $797 billion in 2023 (FRED)
GDP per capita:
(USVI) $44,320.90 in 2022 (World Bank)
(USVI) $42,571.10 in 2021 (World Bank)
(USVI) $39,787.40 in 2020 (World Bank)
(U.S.) $85,809.90 in 2024 (World Bank)
(NYS) $92,341 in 2024 (Statista)
(Manhattan) $94,654 in 2023 (Census Reporter)
Inflation rate:
(USVI BER) 8.4% in 2023
(USVI BER) 9.2% in 2022
(USVI BER) 8.6% in 2021
(USVI BER) 5.8% in 2020
(U.S.) 2.9% in 2024
(NYS) Approx. 3% in September 2025 (USAFacts)
Unemployment rate:
(USVI) 12% in 2024
(U.S.) 4.1% in September 2024
(NYS) Approx. 4.0% in August 2025 (USAFacts)
(Manhattan) Approx. 4.9% in 2025 (YCharts)
Gini coefficient (Income Inequality):
There is no income inequality for USVI
(USA) 0.48-0.49 in 2020-2024 (Pew Research)
(NYS) 0.52 in 2024 (Statista)
(Manhattan) 0.60 in 2022 (Social Explorer)