2020 Annual Economic and Financial Review

2020 Annual Economic and Financial Review

SAINT VINCENT AND THE GRENADINES

sector of the economy, is estimated to have declined by 1.7 per cent in 2020. Lower performance in the tourism industry, proxied by developments in the hotel and restaurants sector, reflected an estimated 61.3 per cent decline in total visitor arrivals to 156,255. Visitor declines in all of the major visitor categories fuelled the reduction in total visitors. Most significantly, the stay-over and cruise categories recorded lower performances of 69.3 per cent and 60.2 per cent, respectively.

and household furnishings, supplies and maintenance (0.7 per cent). The lower overall price level was moderated by higher indices for food and non- alcoholic beverages (2.7 per cent) and health (4.4 per cent). Fiscal and Debt Developments In line with the economic fallout, central government’s fiscal operations resulted in a wider estimated overall deficit of $124.5m (5.7 per cent of GDP), compared with one of $66.1m (3.0 per cent of GDP) in 2019. Meanwhile, a primary deficit of $73.0m (3.3 per cent of GDP), eclipsed one of $11.9m (0.5 per cent of GDP) recorded in the previous year. Substantially, higher inflows of capital revenue associated with receipts from extraordinary land sales, partially offset increased capital expenditure outlays. A current account deficit of $32.8m (1.5 per cent of GDP) was recorded, compared with $1.1m (0.1 per cent of GDP) in the previous year. Current revenue increased by 0.8 per cent to $605.3m (27.7 per cent of GDP), from $600.4m (27.0 per cent of GDP) in 2019, principally due to greater receipts from property tax.

St Vincent & the Grenadines Visitor Arrivals In thousands

300.0

250.0

200.0

150.0

100.0

50.0

0.0

2016

2017

2018

2019

2020

Stay-overs

Cruise Ship Passengers (Includes Excursionist)

Yacht arrivals

Consistent depressed economic activity, inflationary pressures eased and as a consequence, the consumer price index fell by 1.0 per cent during 2020, in contrast to a 0.5 per cent increase during 2019. The reduction in the index, generally reflected lower prices for housing, utilities gas and fuel (3.5 per cent), transport (5.0 per cent) with

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