2020 Annual Economic and Financial Review
2020 Annual Economic and Financial Review
MONTSERRAT
Deficits on both goods and services narrowed over the review period.
Montserrat Selected Monetary Indicators Annual Percentage Change
100.0
12.00
50.0
10.00
Montserrat Balance of Payments (EC$M)
0.0
8.00
(50.0)
6.00
100.0
(100.0)
4.00
80.0
(150.0)
2.00
(200.0)
0.00
60.0
(250.0)
(2.00)
40.0
(Money & Credit)
(Net Foreign Assets)
(300.0)
(4.00)
20.0
(350.0)
(6.00)
2016
2017
2018
2019
2020
0.0
Credit
Money
Net Foreign Assets
(20.0)
(40.0)
2016
2017
2018
2019
2020
The banking system remained relatively liquid. The ratio of net liquid assets to total deposits stood at 80.9 per cent, which was 1.9 percentage points below the position a year ago, but considerably above the ECCB minimum benchmark of 20.0 per cent. Asset quality improved, with the ratio of non-performing loans to gross loans falling to the ECCB benchmark of 5.0 per cent, from 5.45 per cent in 2019. External Sector Developments Montserrat ended 2020 in a net lending position with the rest of the world of $35.3m (20.5 per cent of GDP) in contrast to a net borrowing position of $1.5m (0.8 per cent of GDP) in 2019 . This outturn was largely driven by increased grant flows from the United Kingdom, which resulted in a current account surplus of $18.9m, following a deficit of $1.9m in the previous year.
Exports of Goods
Imports of Goods
Current Balance
Net Lending/Net Borrowing
On the financial account, Montserrat’s imputed reserves increased by $42.8m, while deposit taking institutions reduced their foreign deposits by $40.7m.
Outlook The
Montserrat is projected to return to growth in 2021, although there is some uncertainty regarding the pace of recovery as Covid-19 vaccinations Covid-19. On the upside, the domestic economy is projected to receive significant support from key public sector investments, including ongoing work on the John A Osborne Airport, the Little Bay Harbour and the construction of a new national hospital. economy
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