Economic and Financial Review - June 2019

June 2019 Economic and Financial Review EXECUTIVE SUMMARY

D O M E S T I C E C O N O M I C D E E L O P M E N T

Overview

deteriorated to an overall deficit, in contrast to a surplus recorded in the corresponding period of the prior year. The outstanding debt stock of the public sector expanded during the period under review. The merchandise trade deficit is estimated to have narrowed, primarily due to lower import payments. The banking system remained adequately capitalized, with improved asset quality, in a relatively tight liquidity environment. Additionally, monetary liabilities and net foreign assets rose, while domestic credit fell. Given the performance of the first six months of the year and expectations for the domestic economy in the latter half, economic activity in the ECCU is forecasted

Provisional estimates of selected indicators for the first half of 2019 indicate an improvement in economic activity at the ECCU level, relative to the outturn in the corresponding period of 2018. The impetus stemmed largely from a relatively higher level of activity in the tourism industry and construction sector, with support from some other major economic drivers. The economic expansion over the review period was a consequence of enhanced activity in all member territories. In the ECCU, inflationary pressures were muted in spite of a marginal increase in consumer prices in five countries. The consolidated fiscal balances of the central governments

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Eastern Caribbean Central Bank