2020 Annual Economic and Financial Review

2020 Annual Economic and Financial Review

ANGUILLA

ANGUILLA

The economy is expected to expand in 2021 on the assumption that construction activity will be more robust and visitors will return to Anguilla as vaccinations in the main tourism source markets of the USA and the UK pick up pace.

Overview The closing of borders and travel restrictions to contain the spread of the COVID-19 pandemic brought a seven (7) month halt to tourism activity in Anguilla, the main driver of economic growth. As a result, the economy suffered its worst downturn to date, with preliminary GDP estimates pointing to a contraction of 27.4 per cent in 2020, following growth of 5.4 per cent in the prior year. The adverse effects of the pandemic permeated through several other economic sectors leading to a significant drop in fiscal revenue and a worsening of labour market conditions.

Anguilla Selected Economic Indicators Annual Percentage Change

30.0

20.0

10.0

0.0

(10.0)

(20.0)

(30.0)

(40.0)

2016

2017

2018

2019

2020

Real GDP

Nominal GDP

Consumer Price Index

10