2020 Annual Economic and Financial Review

2020 Annual Economic and Financial Review

MONTSERRAT

In the hotels and restaurants sector (a proxy for tourism activity), value added contracted by 62.4 per cent, largely due to the lockdowns for the major part of the year. Total visitor arrivals fell by 60.4 per cent to 8,300, compared with a visitor total of 20,976 in 2019. This was manifested by declines of more than 55.0 per cent across the stay-over and cruise ship categories.

Consumer by 2.8 per cent in 2020, after contracting by 0.6 per cent one year earlier. The deflationary pressures were largely attributed to lower prices for communication (11.0 per cent), transport (3.7 per cent), household furnishings, supplies and maintenance (3.6 per cent), and housing, utilities, gas and fuels (2.9 per cent). (5.1 per cent of GDP), from $23.0m (12.7 per cent of GDP) in 2019, due mainly to an increase in grant inflows. Likewise, the primary balance registered a smaller deficit of $8.5m (4.9 per cent of GDP) compared with $22.9m (12.6 per cent of GDP) one year earlier. Additionally, a current account surplus of $3.1m was recorded, in contrast to a deficit of $7.4m in the previous year. Current revenue rose by 1.0 per cent to $52.2m (30.3 per cent of GDP) from $51.7m (28.5 per cent of GDP) in the prior year, reflecting marginal increases in both tax and non- tax revenue. Current expenditure amounted to $139.9m (81.3 per cent of GDP), which was 2.3 per cent above last prices fell Fiscal and Debt Developments The Central Government’s overall deficit narrowed to $8.7m

Montserrat Visitor Arrivals In thousands

12.0

10.0

8.0

6.0

4.0

2.0

0.0

2016

2017

2018

2019

2020

Stay-overs

Cruise Ship Passengers (Includes Excursionist)

Yacht arrivals

Arrivals from all the major source markets fell significantly over the review period. These developments negatively impacted value added in the transport, storage and communications sector, which accounted for 9.8 per cent of GDP, and fell by 28.3 per cent. Other key sectors registering declines included financial intermediation (5.4 per cent) and wholesale and retail trade (3.0 per cent).

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