2020 Annual Economic and Financial Review

2020 Annual Economic and Financial Review

MONTSERRAT

MONTSERRAT

Overview Preliminary data indicate that the economy of Montserrat contracted by 8.5 per cent in 2020 in contrast to growth of 5.9 per cent in the previous year. Projections for 2021 point to a modest recovery, although uncertainties persist due to the evolving nature of the COVID-19 pandemic.

Real Sector Developments The Montserrat economy was severely impacted by the global pandemic in 2020, as the pace of major construction activities slowed, compounded by a collapse of visitor arrivals and reduced consumer spending. Value added in the construction sector, which accounted for 4.3 per cent of GDP, fell by 25.0 per cent, as the lock down delayed private sector projects. However, this development was partly mitigated by a 71.7 per cent increase public sector investment.

Montserrat Selected Economic Indicators Annual Percentage Change

(8.0) (6.0) (4.0) (2.0) 0.0 2.0 4.0 6.0 8.0 10.0

2016

2017

2018

2019

2020

Real GDP

Nominal GDP

Consumer Price Index

30