2020 Annual Economic and Financial Review

2020 Annual Economic and Financial Review

ANGUILLA

As a result, total broad money liabilities (M2) fell by 15.3 per cent to $919.2m (125.2 per cent of GDP), from $1085.5m (105.9 per cent of GDP) in the previous year.

(21.2 per cent of GDP), a decline of $245.5m from the previous year, led by a contraction in imports ($322.1m). Meanwhile, travel inflows fell by $294.4m.

Anguilla Selected Monetary Indicators Annual Percentage Change

Anguilla Balance of Payments (EC$M)

0.0 5.0 10.0

35.0

800.0

600.0

30.0

400.0

(45.0) (40.0) (35.0) (30.0) (25.0) (20.0) (15.0) (10.0) (5.0)

25.0

200.0

20.0

0.0

15.0

(200.0)

10.0

(400.0)

(Money & Credit)

(Net Foreign Assets)

(600.0)

5.0

(800.0)

0.0

2016

2017

2018

2019

2020

2016

2017

2018

2019

2020

Exports of Goods

Imports of Goods

Current Balance Net Lending/Net Borrowing

Credit

Money

Net Foreign Assets

Movements on the capital account were negligible while the financial account saw an increase in the net borrowing position to $354.7m, mainly due to portfolio investment and other investment flows. Outlook Preliminary forecast indicates that the economy of Anguilla will expand in 2021, led by an uptick in the number of visitors coming to the island and ongoing construction activity.  It is expected that vaccinations in its main source markets of the UK and USA will yield greater travel demand, with Anguilla being a beneficiary.

The liquidity position of the overall banking system improved as the total loans to deposits ratio contracted by 0.5 percentage point to 46.1 per cent. The ratio of non-performing loans to gross loans fell to 25.1 per cent from 25.8 per cent in 2019. The ratio benefited from loan moratoria, which are expected to come to an end in 2021. External Sector Developments An improvement was noted on the Balance of Payments, as the net borrowing position fell to $155.9m (21.2 per cent of GDP) in 2020, from $402.9m (39.3 per cent of GDP) in 2019. The current account deficit narrowed to $155.7m

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