Anguilla is a self-governing British Overseas Territory in the eastern Caribbean. It is a small British Overseas Territory located in the eastern Caribbean Sea, just north of Saint Martin and east of Puerto Rico. It is the most northerly of the Leeward Islands in the Lesser Antilles. The island's capital is The Valley. Its political system follows the Westminster model, its legal system is based on English common law, and its economy relies chiefly on tourism and offshore financial services.
Geography and environment
Anguilla is a low-lying island of about 91 km². Despite its modest size—only about 16 miles long and 3 miles wide—Anguilla is known for its pristine white-sand beaches, crystal-clear turquoise waters, and relaxed, unspoiled atmosphere. Its coastal and marine environments include reefs, salt ponds and wetlands, which support seabird and fish habitats and form part of the territory's biodiversity and wetland resources. Because the island is small and flat, it is exposed to sea-level-rise and to tropical storms, and its freshwater supply depends largely on desalination and rainfall-fed groundwater. The island's climate is tropical and semi-arid, with a rainy season from roughly late summer to early winter.
History
The island's modern political status developed out of a dispute with the former colony of Saint Christopher-Nevis-Anguilla. Prior to serving as Chief Minister, Webster was designated Chairman of the Anguilla Island Council when the territory declared its independence from the Saint Christopher-Nevis-Anguilla government in 1967, through the Anguillan Revolution which he led. In a referendum held on 11 July the inhabitants of Anguilla voted overwhelmingly to secede from the Associated State and to become a separate colony of Britain.
Britain later accepted the separation. By 1971 Britain formally allowed Anguilla to separate, and in 1980 the island became a distinct British dependent territory. The island has since been organized as a British overseas territory with local self-government, and it has been administered under the constitution in force since that time.
Government and politics
Anguilla has a parliamentary democracy with a unicameral legislature. The House of Assembly has 11 seats with seven members elected through direct voting from single-seat constituencies, two nominated members appointed by the governor, attorney general, and deputy governor. The head of government is the Premier. The Premier is appointed by the Governor of Anguilla on behalf of the monarch of the United Kingdom, and is usually the member of the House of Assembly who commands majority support. The office was called Chief Minister until 2019, when a constitutional amendment renamed it. Cora Richardson-Hodge is the incumbent since February 2025.
The governor represents the British monarch. The governor is the highest authority on Anguilla, but daily business is handled by local Anguillan elected officials. Under the territory's arrangements, Britain retains responsibility for defense and foreign affairs. The judiciary and law are closely tied to English legal traditions, and the territory's relations with the outside world are shaped by its status within the sovereignty framework of the United Kingdom.
Economy
Anguilla's economy is small, open and highly dependent on a few sectors. The economy of Anguilla depends heavily on luxury tourism, offshore banking, lobster fishing, and remittances from emigrants. Lobster, fish, livestock, salt and rum are among its exports, while fuels, foodstuffs and manufactured goods are imported. Due to its small size, few natural resources, and reliance on tourism and foreign direct investment, Anguilla is vulnerable to external economic conditions in the United States, Canada and Europe. Therefore, economic growth in Anguilla can be very volatile.
Recent performance has been strong. The overall economic outlook remains positive with a realised growth rate of 3.2 per cent. Tourism and construction have continued to drive Anguilla's economy, with solid economic progress realised over the 2025 fiscal year. After the COVID-19 pandemic, the Anguillan economy grew by 24.2% in 2022, amid a waning COVID-19 pandemic and a resurgence in travel demand. Public finances have also improved. Government operations surpassed expectations, with an overall surplus of $171.0m (12.1 per cent of GDP), driven by increased revenue receipts. Non-tax income has grown notably, and the rise was predominantly driven by non-tax revenue, notably the nearly doubled income from .ai domain registrations. Public debt has declined, with the ratio estimated at 20.8 per cent of GDP.
The currency is the East Caribbean dollar, issued through the regional central-bank. Anguilla's currency is the East Caribbean dollar, though the US dollar is also widely accepted. A goods and services tax was introduced to broaden government revenue; higher fiscal revenues due, in part, to the application of a new Goods and Services Tax (GST) and prudent spending, allowed the Government of Anguilla (GOA) to maintain fiscal surpluses.
Offshore banking and financial services form a smaller but growing part of the economy. Anguillan officials have put substantial effort into developing the offshore financial sector, which is small but growing. Official statistics are compiled by the Anguilla Statistics Department, which was formed in 1958 and is headquartered in The Valley.
Population and society
Population estimates for Anguilla are modest. One country profile gives a figure of about Population 19.4K, although estimates vary by source and date. Anguilla has a large diaspora, and remittances from emigrants form an important part of household income, which links the territory to the broader migration patterns of the Caribbean.
The island's culture reflects its history. The island's culture blends African and British influences, evident in its music, festivals, and cuisine. English is the official language, and the local music and cultural traditions include festivals that are central to community life.
Challenges and outlook
Anguilla's main long-term challenges arise from its small scale and dependence on tourism. In the medium term, prospects for the economy will depend largely on the recovery of the tourism sector and, therefore, on revived income growth in the industrialized nations as well as on favorable weather conditions. Hurricanes, climate change and external shocks can therefore affect incomes, public finances and the housing sector at the same time. Planning efforts are under way. Work will begin on its National Development Plan in the middle of 2026.
References
- Government of Anguilla |About Anguillagov.ai
- Ronald Websteren.wikipedia.org
- Anguilla — Facts, Capital, Population, Flag & Profilecountryreports.org
- Premier of Anguillaen.wikipedia.org
- Governor of Anguillaen.wikipedia.org
- Economy of Anguillaen.wikipedia.org
- 2025 Annual Economic and Financial Review - Anguillaeccb-centralbank.org
- Country Economic Review 2022 - Anguillacaribank.org
- Anguillaeconomy.com
- Statistics department (Anguilla)en.wikipedia.org
- Anguilla - Country Profileopenfactbook.org
- Anguilla Country Informationaardy.com
- Government of Anguilla to start its national development plan in 2026caribbean.eclac.org